Multiple Select QuestionSelect all that applyWhat are three important functions of money?Multiple select question.Presentation mechanismShow of powerMedium of exchangeStore of valueMeasure of value
Question
Multiple Select QuestionSelect all that applyWhat are three important functions of money?Multiple select question.Presentation mechanismShow of powerMedium of exchangeStore of valueMeasure of value
Solution
The three important functions of money are:
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Medium of exchange: Money is used as a common medium to exchange goods and services. It facilitates trade because buyers and sellers of goods and services can use it as a form of payment.
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Store of value: Money can be saved and used in the future. It is a store of value because it allows individuals to transfer purchasing power from the present to the future.
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Measure of value: Money is used to measure the value of goods and services. It provides a benchmark or standard of value, which makes it easier to compare the prices of goods and services.
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