One of the functions of money is to serve as a:
A) valuation tool.
B) medium of exchange.
C) sole way to make payments.
D) completely fixed unit of measure.

Question

Quizplus · Accepted Answer

Money serves as a medium of exchange, enabling transactions to take place without the need for barter. While it can also serve as a valuation tool and a unit of measure, these are not the primary functions of money. Money is not the sole way to make payments, as alternative forms such as credit or barter still exist. Money is also not completely fixed, as inflation and changes in the money supply can affect its value over time.

One of the Functions of Money Is to Serve as A