Which choice does NOT describe a basic function of money? A) a medium of exchange B) a measure of value C) a store of value Eliminate D) a traded item
Social Studies · High School · Mon Jan 18 2021
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The choice that does NOT describe a basic function of money is:
D) a traded item
The other three choices—medium of exchange, measure of value, and store of value—are all basic functions of money. Money serves as a medium of exchange for facilitating transactions, a measure of value to compare the worth of different goods and services, and a store of value to hold wealth over time. The term "traded item" does not accurately describe a fundamental function of money in the context of its roles in the economy.
Money itself is not typically traded as a commodity. Instead, money serves as a medium of exchange, a measure of value, and a store of value. While various forms of money can be used in transactions, money is fundamentally a tool for facilitating exchanges and representing value rather than being an item that is traded itself.