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What is the primary function of money in an economy?

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Question: What is the primary function of money in an economy?

Options:

  1. To serve as a medium of exchange
  2. To act as a store of value
  3. To provide a unit of account
  4. All of the above

Correct Answer: All of the above

Solution:

Money serves multiple functions including being a medium of exchange, a store of value, and a unit of account.

What is the primary function of money in an economy?

Practice Questions

Q1
What is the primary function of money in an economy?
  1. To serve as a medium of exchange
  2. To act as a store of value
  3. To provide a unit of account
  4. All of the above

Questions & Step-by-Step Solutions

What is the primary function of money in an economy?
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