Question:
Which one of the following is not a function of money?
Which one of the following is not a function of money?
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A useful way to remember the primary functions is to associate them with transactional utility: money acts as a medium to trade, a measure to price, and a store to save.
Updated On: Jul 24, 2026
- Unit of value or account
- Medium of exchange
- Standard of living
- Store of value
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The Correct Option is C
Solution and Explanation
Step 1: Understanding the Concept:
Money performs primary, secondary, and contingent functions in an economy.
These functions define money's role as a tool to facilitate trade, economic planning, and wealth management.
Detailed Explanation:
Let us examine each function:
- Unit of value or account: This is a primary function. Money serves as a common denominator to measure and express the value of diverse goods and services.
- Medium of exchange: This is the most fundamental function of money, which eliminates the double coincidence of wants required under a barter economy.
- Store of value: This is a secondary function. Money allows individuals to save purchasing power over time to be used in future transactions.
- Standard of living: This is a socio-economic metric representing the level of wealth, material comfort, and necessities available to an individual or population. It is not an inherent function of money itself, although holding money can influence a person's standard of living.
Step 2: Final Answer:
Thus, "Standard of living" is not a function of money, which matches Option (C).
Money performs primary, secondary, and contingent functions in an economy.
These functions define money's role as a tool to facilitate trade, economic planning, and wealth management.
Detailed Explanation:
Let us examine each function:
- Unit of value or account: This is a primary function. Money serves as a common denominator to measure and express the value of diverse goods and services.
- Medium of exchange: This is the most fundamental function of money, which eliminates the double coincidence of wants required under a barter economy.
- Store of value: This is a secondary function. Money allows individuals to save purchasing power over time to be used in future transactions.
- Standard of living: This is a socio-economic metric representing the level of wealth, material comfort, and necessities available to an individual or population. It is not an inherent function of money itself, although holding money can influence a person's standard of living.
Step 2: Final Answer:
Thus, "Standard of living" is not a function of money, which matches Option (C).
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