Which of the following statements regarding the functions of money is/are true?
Money as a unit of account means it is a standard numerical unit of measurement of the market value of goods, services and other transactions.
Money as a standard of deferred payment is not a significant function because modern economies rarely use money for future payments.
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. Only 1.
- Money as a unit of account means it is used to measure and compare the market value of goods, services, and transactions, which is true.
- Money as a standard of deferred payment is an important function, as it allows for future payments and credit transactions, which are commonly used in modern economies. Therefore, statement 2 is incorrect.