Question

Which of the following is not the function of money?

• A. A store of value
• B. A measure of economic activity
• C. A medium of exchange
• D. A measure of value

Hint:

Remember the three main functions of money: medium of exchange, store of value, and measure of value.

Answer 1

The Correct Option is B

Step 1: Understanding the functions of money.
Money performs several important functions in an economy. It acts as a medium of exchange, a store of value, and a measure of value (unit of account).

Step 2: Identifying the incorrect option.
Money itself does not measure economic activity. Economic activity is measured by indicators such as GDP.

Step 3: Analysis of the options.

• 
  (A) A store of value: Correct function of money.
• 
  (B) A measure of economic activity: Incorrect. Not a direct function of money.
• 
  (C) A medium of exchange: Correct function.
• 
  (D) A measure of value: Correct function.

Step 4: Conclusion.
Therefore, “a measure of economic activity” is not a function of money.

Final Answer:} A measure of economic activity.