Question

A person swaps a bag of fruits for some meat. In this case, money functions as a:

Multiple Choice

• standard of value.

• counterfeit deterrent.

• medium of exchange.

• measure of value.

• store of value.

Answer 1

Money basically performs three type of important functions that are-

Unit of account

Medium of exchange

Store of value

Store of value means that money can be stored now and can be used for future purposes like if a person deposits in a bank account

Medium of exchange means the money can be used for transactions of goods and services

Standard of account means the money is having standard value se dollar that can be used for buying or selling purpose

In the given question is a person uses a bag of fruits for meat buying

So here the money is acting as medium of exchange for the transaction

The answer is medium of exchange