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O Levels Economics (2281)•2281/13/O/N/20
Question 9 from 2281/13/O/N/20

Explanation

Matching Money's Characteristics and Functions

Steps:

  • Recall characteristics of money: acceptability, divisibility, portability, durability.
  • Recall functions of money: medium of exchange, measure of value, store of value.
  • Examine each option for one characteristic paired with one function.
  • Select the pair that correctly combines both.

Why A is correct:

  • Acceptability is a core characteristic ensuring money is widely recognized; medium of exchange is a primary function allowing goods/services to be traded without barter, per economic definitions.

Why the others are wrong:

  • B: Cash is a form of money, not a characteristic; measure of value is a function.
  • C: Both divisibility and portability are characteristics, not a function.
  • D: Store of value is a function; bank deposit is a form of money, not a characteristic.

Final answer: A

Topic: Money and banking

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