Question

Among the following, which are the functions of money? (A) Medium of exchange.
(B) Unit of account.
(C) Bartering.
(D) Store of value.

• A. (A), (B) and (D) only
• B. (A), (B) and (C) only
• C. (A), (B), (C) and (D)
• D. (B), (C) and (D) only

Hint:

Money has 4 classic functions: medium of exchange, unit of account, store of value, standard of deferred payments.

Answer 1

The Correct Option is A

Step 1: Recall the major functions of money.
- Medium of exchange: Replaces barter by facilitating trade.
- Unit of account: Provides a common measure of value.
- Store of value: Allows value to be saved for future use.
- Standard of deferred payments: Used to settle future payments.
Step 2: Evaluate statements.
- (A) Medium of exchange → Correct.
- (B) Unit of account → Correct.
- (C) Bartering → Wrong; barter exists when money is absent.
- (D) Store of value → Correct.
Step 3: Conclusion.
Correct set of functions = (A), (B), (D).
Final Answer: \[ \boxed{(A), (B), (D)} \]