Which of the following lists the functions of money?

• A. Means of production, source of income, measure of utility
• B. Instrument of policy, determinant of demand, creator of supply
• C. Medium of exchange, unit of account, store of value
• D. Tool for investment, method of taxation, basis for trade

Answer: (C)

Verified step by step guidance

1. Understand that money serves specific fundamental functions in an economy, which help facilitate trade and economic activity.
2. Identify the three primary functions of money: (1) Medium of Exchange, which means money is widely accepted in exchange for goods and services; (2) Unit of Account, which means money provides a common measure to value goods and services; and (3) Store of Value, which means money can preserve value over time for future use.
3. Review each option given in the problem and compare it against these three functions to determine which list correctly matches the functions of money.
4. Eliminate options that include terms unrelated to the core functions of money, such as 'means of production' or 'instrument of policy,' which are economic concepts but not functions of money.
5. Conclude that the correct answer is the list containing 'Medium of exchange, unit of account, store of value' because it accurately reflects the accepted economic functions of money.