Question

Which of the following is a primary function of money?

• A. The store of value function.
• B. The medium of exchange function.
• C. The unit of account function.
• D. The saving function.

Answer 1

The correct option is B The medium of exchange function.

Money, as a medium of exchange, means that it can be used to make payments for all transactions of goods and services. It is the most essential function of money. Money has the quality of general acceptability So, all exchanges take place in terms of money.