Question

Which of the following is the main function of money according to modern economists ?

• A. Medium of exchange
• B. Common measure of value
• C. Store of value
• D. All of the above

Answer 1

The correct option is C Store of value

Money refers to a common medium of exchange that is issued under the law of government and acts as a legal tender for the whole country. The main function of money according to modern economics is money as a store of value. As a store of value, money functions by helping individuals to store their wealth in the form of money. Therefore, money acts as an asset that sustains value over a period of time because it is non-perishable and inexpensive form of storage.