Money functions primarily as a medium of ____, a unit of ____, and a store of value.

• A. trade; measurement
• B. production; consumption
• C. exchange; account
• D. distribution; wealth

Answer: (C)

Verified step by step guidance

1. Identify the three primary functions of money in economics: medium of exchange, unit of account, and store of value.
2. Understand that 'medium of exchange' means money is used to facilitate trade by eliminating the inefficiencies of barter.
3. Recognize that 'unit of account' refers to money providing a common measure for valuing goods and services, making it easier to compare prices.
4. Know that 'store of value' means money can preserve value over time, allowing individuals to save purchasing power for the future.
5. Match these definitions to the correct terms in the problem: 'exchange' fits medium of exchange, 'account' fits unit of account, and 'store of value' remains as is.