The three functions money serves are: Standard of value, medium of exchange, and
ID: 1122532 • Letter: T
Question
The three functions money serves are:
Standard of value, medium of exchange, and the reserve ratio.
Store of value, medium of exchange, and the money multiplier.
Medium of exchange, disposable income, standard of value.
Medium of exchange, store of value, and standard of value.
a.Standard of value, medium of exchange, and the reserve ratio.
b.Store of value, medium of exchange, and the money multiplier.
c.Medium of exchange, disposable income, standard of value.
d.Medium of exchange, store of value, and standard of value.
Explanation / Answer
Answer - Three functions of the money are Medium of exchange, store of value, and standard of value. Medium of exchange function means money is easily acceptable by everyone. People are ready to sell their product in exchange to money. Store of value is another important function of money. It was not possible to hold out products for long time when money was not in existence. After invention of money it became easy to hold value of our product. Standard of value, after invention of money setting of price become easier.
Option D is the correct answer.
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