Which is the primary function of money?

Correct option is C

(c) Both (1) and (2)

The primary functions of money include acting as a medium of exchange and a measure of value. It facilitates transactions and provides a standard for measuring the worth of goods and services.

Information Booster:

• Medium of Exchange: Money eliminates barter system inefficiencies.
• Measure of Value: Money provides a standard for pricing goods and services.
• Store of Value: Money retains purchasing power over time.
• Standard of Deferred Payment: Money allows for credit transactions.
• Transfer of Value: Money facilitates remittances and economic exchanges.

Additional Information:

• Gold was historically used as money.
• Fiat currency is legal tender but has no intrinsic value.
• Cryptocurrency is emerging as digital money.

The primary functions of money include acting as a medium of exchange and a measure of value. It facilitates transactions and provides a standard for measuring the worth of goods and services.

Information Booster:

• Medium of Exchange: Money eliminates barter system inefficiencies.
• Measure of Value: Money provides a standard for pricing goods and services.
• Store of Value: Money retains purchasing power over time.
• Standard of Deferred Payment: Money allows for credit transactions.
• Transfer of Value: Money facilitates remittances and economic exchanges.

Additional Information:

• Gold was historically used as money.
• Fiat currency is legal tender but has no intrinsic value.
• Cryptocurrency is emerging as digital money.