The Functions of Money Are

question 231

Multiple Choice

The functions of money are

• A) medium of exchange, unit of account, and store of value.
• B) pricing, contracts, and means of payment.
• C) medium of exchange and the ability to buy goods and services.
• D) medium of exchange, unit of account, and means of payment.

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Definitions:

Incentives

Motivations or rewards that influence the actions and behaviors of individuals or organizations.

External Benefit

A positive effect or advantage that results from a transaction or activity but benefits a third party who is not directly involved in the transaction.

Social Value

The importance or worth of something to society, considering factors beyond mere economic gains, like environmental sustainability and social equity.

Private Cost

The cost that is borne by the individual who creates it, as opposed to society or others.