Question

The three functions of money are:A. spending for consumption, investment, and government purchases.B. measuring balance of payments, exchange rates, and interest rates.C. implementing monetary policy, fiscal policy, and structural policy.D. serving as a medium of exchange, unit of account, and store of value.

Answer 1

Answer: The three functions of money are:

1. serving as a medium of exchange
2. unit of account
3. and store of value.

Explanation:

1. serving as a medium of exchange: because money is generally accepted and and guaranteed by the governemet is used to buy goods and services.
2. unit of account: the value of goods and services are measured in money that we usually call price.
3. store of value: when you sell something and don't use the money you are saving, so you maintain the value to use it later.