The Functions of Money Are

question 32

Multiple Choice

The functions of money are

• A) a conductor of economic activity, a medium of exchange, and a store of value.
• B) a medium of exchange, a store of value, and a factor of production.
• C) a store of value, a medium of exchange, and a determinant of investment.
• D) a store of value, a unit of account, and a medium of exchange.

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Definitions:

Great Depression

A severe worldwide economic downturn that took place during the 1930s, marked by significant declines in industrial production, widespread unemployment, and deflation.

Public Policy

Government actions and regulatory measures that aim to address public issues, guide economic, social, and administrative activities.

Fully Rational

A term describing decision-makers who, with complete information, are able to consistently make choices that maximize their utility or profit.

Loss Aversion

A cognitive bias where the pain of losing is psychologically about twice as powerful as the pleasure of gaining.