[Solved] Which one of the following is not a function of money? (2024)

FAQs

[Solved] Which one of the following is not a function of money? ›

Money serves four basic functions: it is a unit of account, it's a store of value, it is a medium of exchange and finally, it is a standard of deferred payment.

Money serves four basic functions: it is a unit of account, it's a store of value, it is a medium of exchange and finally, it is a standard of deferred payment.

store of value. The correct answer is c). The standard of the deposit is not a function of money.

To summarize, money has taken many forms through the ages, but money consistently has three functions: store of value, unit of account, and medium of exchange.

Expert-Verified Answer

Open market operation is not one of money function. In other word, Money is acceptable by "all" and its includes bank money, Commodity money and Fiat money.

Answer and Explanation:

The price mechanism is not a function of money. It is a system for setting the prices of goods and services through the interactions between sellers and buyers. Money has three main functions, and these include store of value, medium of exchange, and unit of account.

The five key functions of a financial system are: (i) producing information ex ante about possible investments and allocate capital; (ii) monitoring investments and exerting corporate governance after providing finance; (iii) facilitating the trading, diversification, and management of risk; (iv) mobilizing and pooling ...

Credit cards are not considered money; they are simply a tool for deferring payment and accessing a line of credit, unlike coins, Federal Reserve notes, or checks which represent actual money. So, the correct option is E) Credit cards.

What are the three basic functions of money? Money as a medium of exchange, money as a unit of account, money as a store of value.

Transfer of funds is not a primary function of commercial banks, but rather a secondary function. The primary functions of commercial banks include creating credit, lending loans to the public, and receiving deposits from the public.

Which of these is not one of the three uses of money? ›

However, a means to barter is not one of the three uses of money. Bartering is the direct exchange of goods or services without the use of money. Money also serves as a unit of account, which means it provides a common measure of the value of goods and services.

Answer and Explanation:

The Fed does not provide banking services to consumers.

The three functions of money are: Medium of exchange: use item to buy goods and services. Store of value: use item to transfer purchasing power to the future. Unit of account: use item to denote prices and debts.

Final answer:

The function that is not associated with money is 'medium of barter'. Money serves as a medium of exchange, a store of value, and a unit of account, but barter refers to the direct exchange of goods and services without money.

To approach the first problem, consider which options among unit of account, medium of exchange, and store of value are recognized functions of money and identify the one that is not typically considered a function of money in modern economies. The correct answer is ii) commodity.

What Is Money? Money is a system of value that facilitates the exchange of goods in an economy. Using money allows buyers and sellers to pay less in transaction costs, compared to barter trading. The first types of money were commodities. Their physical properties made them desirable as a medium of exchange.

Money – in its various forms – fulfils various key functions including a medium of exchange, a unit of account, a store of value and a standard of deferred payment.

functions of money;(i) Medium of exchange(ii) Measurement of value;(iii) Standard of deferred payments(iv) Store of value.In the long run, something will not function as money if it does not fulfill all four functions.

Money is a system of value that facilitates the exchange of goods in an economy. Using money allows buyers and sellers to pay less in transaction costs, compared to barter trading. The first types of money were commodities. Their physical properties made them desirable as a medium of exchange.