Which of the Following Describes the Basic Function of Money

question 115

Multiple Choice

Which of the following describes the basic function of money?

• A) store of purchasing power
• B) standard of value
• C) medium of exchange
• D) liquidity

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Definitions:

Exchange Rate

The value at which one currency can be exchanged for another, influencing international trade and investment.

Market

A venue or mechanism where buyers and sellers interact to trade goods, services, or information.

Marginal Revenue

The increase in financial returns a business achieves by disposing of one more unit of a good or service.

Marginal Cost

Marginal cost is the additional cost incurred from producing one more unit of a good or service, vital for decision-making on production levels.