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What is the primary function of money ?

(A) Store of value

(B) Transfer of value

(C) Medium of exchange

(D) Both (A) and (C)

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Correct option is: (D) Both (A) and (C)

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

• The most important function of money is that it serves as a medium of exchange.

• In a barter economy, it was difficult to exchange goods since the exchange in a barter system required a double coincidence of wants.

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