Core Functions of Money

Steps:

• Recall money's role in an economy: it simplifies trade and preserves wealth.
• Verify medium of exchange: money enables buying/selling without barter inefficiencies.
• Verify store of value: money retains purchasing power for future use.
• Distinguish unit of account: it measures prices but is not a core function in basic classifications.

Why A is correct:

• A accurately identifies medium of exchange and store of value as essential functions per economic definitions, while correctly excluding unit of account as a supporting measure rather than a primary function.

Why the others are wrong:

• B incorrectly rejects medium of exchange and store of value, accepting only unit of account.
• C wrongly rejects medium of exchange, the foundational function for transactions.
• D incorrectly rejects store of value, which is critical for saving and future exchanges.

Final answer: A