The Functions of Money Are

question 5

Multiple Choice

The functions of money are

• A)medium of exchange,unit of account,and store of value.
• B)medium of exchange,the ability to buy goods and services,and the ability to pay off debts.
• C)medium of exchange,the ability to buy goods and services,and checking accounts.
• D)credit cards,checking accounts,currency,and coins.
• E)store of value,use as a barter mechanism,and unit of account.

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Definitions:

Materials

Substances or components that are used in the manufacturing or production of goods.

Annual Fixed Costs

Costs that do not vary with the volume of production or sales and are incurred on a yearly basis.

Variable Costs

Expenses that vary directly with levels of production.

Fixed Costs

Fixed costs refer to the expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.