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Which set names the three functions money must perform?
AMedium of exchange, unit of account, and legal tender
BStore of value, means of payment, and unit of weight
CMedium of exchange, store of wealth, and price ceiling
DMedium of exchange, standard of value, store of value
Answer & Solution
Correct answer: D. Medium of exchange, standard of value, store of value
1. For money to be acceptable it must work as a medium of exchange, a standard of value and a store of value.
2. The medium of exchange function settles trades, the standard of value function prices them, and the store of value function carries wealth forward.
3. A price ceiling is a control on prices, not a job that money performs.
4. Legal tender status and units of weight describe rules and measures, not the three functions.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 15 "Understanding Money and Financial Institutions", section 15.1 Show Me the Money_
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