Which of the following is NOT a function of money?

Study for the FBLA Exploring Economics Test. Master key concepts with flashcards and multiple choice questions, each offering hints and answers. Prepare confidently for your exam!

Money serves several key functions in an economy, and understanding these functions is critical in recognizing the role money plays in transactions and economic health. The functions of money include being a medium of exchange, a unit of account, and a store of value.

As a medium of exchange, money facilitates transactions by eliminating the inefficiencies of barter systems. It allows for the buying and selling of goods and services, making trade easier and more efficient.

Money also acts as a unit of account, providing a standard measure of value for goods and services. This enables individuals and businesses to compare prices and make informed decisions regarding their purchases and sales.

Additionally, money functions as a store of value, meaning it can be saved and retrieved in the future to purchase goods and services. This aspect allows individuals to plan for future expenditures and maintain their purchasing power over time.

An investment vehicle, on the other hand, refers to assets used for investment purposes, such as stocks, bonds, or real estate, which can yield returns. While money can certainly be used to buy these investment vehicles, it itself does not serve the primary function of being an investment vehicle. Thus, it is not categorized alongside the core functions of money.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy