Margaret puts money into her savings account each month. In this example, money is functioning as a:

• A. Unit of account
• B. Medium of exchange
• C. Store of value
• D. Source of revenue

Answer: (C)

Verified step by step guidance

1. Understand the concept of 'Store of Value': Money serves as a store of value when it retains its purchasing power over time, allowing individuals to save and use it in the future.
2. Analyze the scenario: Margaret is putting money into her savings account each month, which indicates she is saving money for future use.
3. Compare the options: A 'Unit of account' refers to money being used to measure the value of goods and services. A 'Medium of exchange' refers to money being used to facilitate transactions. Neither of these directly applies to saving money for future use.
4. Identify the correct option: The act of saving money aligns with the 'Store of value' function, as Margaret is relying on money to retain its value over time.
5. Conclude: The correct answer is 'Store of value' because Margaret is using money to preserve its value for future use rather than spending or measuring its worth immediately.