Which of the Following Is Not a Function of Money

question 163

Multiple Choice

Which of the following is not a function of money?

• A)to act as a medium of exchange
• B)to act as a unit of account
• C)to act as a store of value
• D)to facilitate trade
• E)to provide a double coincidence of wants

---

Definitions:

Skimming Pricing

A pricing strategy involving setting high prices initially and then gradually lowering them to make the product available to a broader market.

Penetration Pricing

A pricing strategy where the price of a new product is set lower than competitors to quickly gain market share.

Skimming Strategy

A pricing tactic that involves setting a high price for a new product to maximize profits from segments willing to pay more, before lowering the price over time.

Price Insensitivity

A condition where the demand for a product is unresponsive or less sensitive to changes in its price.