Which does not pertain to how money works.a.Medium of exchangeb.Equalize demand and supplyc.Measure of valued.Store of value
Question
Which does not pertain to how money works.
a. Medium of exchange
b. Equalize demand and supply
c. Measure of value
d. Store of value
Solution
The option that does not pertain to how money works is b. Equalize demand and supply.
Here's why:
a. Medium of exchange: Money is used as an intermediary in trade to avoid the inconveniences of a pure barter system.
b. Equalize demand and supply: This is not a function of money. The forces of demand and supply in the market help to determine the price of goods and services, not money.
c. Measure of value: Money acts as a common measure of value in terms of which the value of all goods and services are measured and expressed.
d. Store of value: Money provides the benefit of storing wealth or purchasing power for future use.
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