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What are the three functions of money?

Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click twice to empty the box.

a.A store of wealth
b.A common asset
c.A unit of account
d.A short-term asset
e.A medium of exchange
f.A value of trust

Answer :

Answer:

a. A store of wealth

c. A unit of account

e. A medium of exchange

Explanation:

Money has three primary functions which include store of wealth, a unit of account and a medium of exchange. The money acts as medium of exchange to obtain goods or services. Money facilitates to purchase goods or services and measures the value of a certain product or service. Money is tangible in nature but its benefits are sometimes intangible.

Answer:

The correct answers are letters "A", "C", and "E": A store of wealth; A unit of account; A medium of exchange.

Explanation:

The three (3) functions of money are:  

  • A store of wealth: accumulated large amounts of money allows individuals to increase their wealth and posses higher purchasing power.
  • A unit of account: money serves as a standard to measure the value of different items.
  • A medium of exchange: thanks to money, economic transactions can be made easier in a specific currency producers and consumers recognize and accept.

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