Functions of Money

A student records her income and spending for past month, she uses the function of money

• Medium of exchange

• Standard of deferred payments

• Unit of account

• Store of value

A saving account in a bank represents the function of money:

• Store of value

• A medium of exchange

• A standard for deferred payments

• A measure of value

Choose the most accurate definition of "money".

• Money is anything generally accepted in payment for goods or services or in the repayment of debts.

• Money is anything recognized in trading and transaction for goods.

• Money is legal currency that is released by banks to satisfy the financial needs of the people.

For which function, money is accepted as a unit of account?

• Measure of value,

• Medium of exchange

• Standard of deferred payment

• Store of value

Money serves as a unit of account. This means that________

• money is a common measure of value

• money is a means of calculating relative prices of goods and services.

• money is the value in exchange of all goods and services

• all of these

What are the functions of money?

• Unit of account

• Store of Value

• Medium of Exchange

• Store of Bank Notes

• Measure of Value

Which of the following statements explain why a barter system restricts exchange?

• There must be a coincidence of wants

• It is difficult to divide certain commodities

• The commodities used are not homogeneous

• A rate of exchange must be determined

Which of the function is NOT a function of money?

• Indivisibility

• Measure of value

• Store of value

• Medium of exchange

Barter is BEST described as the

• Purchase of goods and services using cheques

• Exchange of goods and services using notes and coins

• Process of exchange involving the use of money

• exchange of goods and services without the use of money

Cows and cattle are type of _____________ money.

• Commodity

• Animal

• Paper

• Bank