Question

Which of the following function does money serve when used to measure the prices of different goods and services?

• A. Store of value
• B. Medium of exchange
• C. Standard of value
• D. Display of power

Answer 1

The correct option is C Standard of value

Money as a standard of value or measure of value refers to that function of money which helps in determining the value of goods and services in the economy. Money is taken as the common denominator while measuring the value of goods and services in monetary terms according to which prices are measured for all commodities in the economy.