{"id":36584,"date":"2024-05-25T12:47:36","date_gmt":"2024-05-25T12:47:36","guid":{"rendered":"https:\/\/www.greatassignmenthelp.com\/questions\/?p=36584"},"modified":"2024-05-25T12:47:36","modified_gmt":"2024-05-25T12:47:36","slug":"which-of-the-following-is-not-a-function-of-money","status":"publish","type":"post","link":"https:\/\/www.greatassignmenthelp.com\/questions\/which-of-the-following-is-not-a-function-of-money\/","title":{"rendered":"Which of the following is not a function of money?"},"content":{"rendered":"
Which of the following is not a function of money?<\/p>\n
a. Store of value<\/p>\n
b. Price mechanism<\/p>\n
c. Medium of exchange<\/p>\n
d. Unit of account<\/p>\n
Answer: b. Price mechanism<\/span><\/span><\/strong><\/p>\n
The four primary functions of money are:<\/span><\/span><\/p>\n
Medium of exchange: Money is one of the common tools of exchange, which is used in more varied businesses and as a means of payment.<\/span><\/span><\/p>\n
Unit of account: Money has the characteristic of making a common medium through which goods and services are priced and this provides the basis of economic calculation.<\/span><\/span><\/p>\n
Store of value: Thus money serves as a media of exchange or purchasing power that can also be used to transfer value from the present to the future.<\/span><\/span><\/p>\n
Standard of deferred payment: Most importantly, the use of money paved the way for credit and payment of debt in the future to be made in the present through the use of money as a common medium.<\/span><\/span><\/p>\n
However, analysis indicated that the price mechanism is not an attribute of money. The operation of the price mechanism entails ways of arriving at the price of a certain product in a given market economy. supply and demand, production costs, market competition, and many more but it is not a direct function\/role or activity assigned to money. They can be defined as a medium of exchange and the unit of account in the mechanism of price however the mechanism of price can be divided from the actual usage of money and is related to resource allocation and determination of price in the market.<\/span><\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"