Money must serve as a medium of exchange, a storehouse of value and a unit of account
Answer: Option B, D, and E
Explanation:
Money, the term coined in terms of the following three services.
- Medium of exchange played as important role to facilitate transactions. Think scenario like without money, then all operations would be exchanged as one product or service exchange for another (barter system).
- To be in above, money must retain its value over time i.e store of value. Failure to save money for some time and still remain valuable in return would not resolve the double overlap of desires and therefore would not be accepted as a medium of exchange.
- Money also acts as a units of account and is a regular measure of the cost of goods and service exchanged. Knowing the value of a good or the price in cash, both the supplier and buyer can decide how much to deliver and how much to buy.