Several functions are competing with money. Without the money, almost every function remains incomplete for the business transactions to the unit of account. On the other hand, every economic transaction is complete with the functions of money. When do you want to know Which of the following is not a function of money? You will get four possible options for the question.
Here are the four available options for the questions among these four options: which of the following is not a function of money? Let’s see the four available options.
- Unit Of Account
- Standard Of Deferred Payment System
- Medium Of Exchange
- Store Of Metal/Store of value
Among these four available options, the store of metal or the store of value is the correct answer. And the store of metal or the store of value is not the function of the money. But why? For detailed descriptive explanations of which of the following is not a function of money? You have to know what types of functions are completed with money.
Which Of The Following Is Not A Function Of Money? – Explanations
The store of metal or the store of value is the correct option for which of the following is not a function of money? But let’s see why the other three options are not the correct alternative solution for the question.
Let’s start with the definition of the Unit of account and what types of functions are performed by money in the unit account.
What Is The Unit Of Account?
A unit account is an account used to value goods and services. The debts and the cost of the service are all calculated in the unit account. Here the money is serving the purpose as the unit account. Money is used to purchase anything in the business, but in the unit accounts, the money is working to measure the value of the services.
The unit account money is pretty important as you are using the money to purchase anything. And when the sellers are pricing the goods, you will know the real factors, and you will know if the goods are quite effective to fill up your needs. Now take a look at the next option definitions.
What Are The Functions Of Money In The Standard Payment System?
The standard deferred payment system is the second option for which of the following is not a function of money? The deferred payment system is entirely one of the most valuable functions of money. The deferred payment system is measuring the future payments terms of the money.
For example, when you are taking any loan, you will pay the interest to the lender. And these interest payment systems are measured up by the standard payment system.
Entire functions are measured by the standard deferred system. Even the interest payment amounts are fixed for a limited period. These payments are all designs for the future. With respect to the deferred payment system, you can see how the payments will go through the money value and measurements.
How Is Money Functioning Through Medium Of Exchange?
As the medium of exchange, money is used from the past. As when you are going to exchange something, or you are setting eyes on the specific item. Not necessary that every time you will get your necessary items with the exchange procedure. This is the reason as the medium of exchange the money is always using.
When you are using money as the medium of exchange, this exchange medium has a greater influence over the economy. And it represents a standard of value. So money is always functioning as the medium of exchange.
What Are The Essential Features Of Money?
There are several essential features of money that you must know if you want to get complete knowledge about it. Some of the key features of money are as follows:-
Money must withstand wear and tear over time. It should remain in good condition and not deteriorate quickly. This ensures that it can serve as a store of value over an extended period. You can ensure durability once you use money in your daily life. You should get through the durability factors of the money.
Money should be easily transportable and divisible into smaller units for various transaction sizes. Portability ensures that money can be used for a wide range of transactions. You must ensure the portability factors of the money. The portability of money makes things easier for you to meet things easier for you, in the long run, to make the exchange possible.
Money needs to be divisible into smaller denominations to accommodate different transaction sizes. This divisibility allows for flexibility in making purchases and ensures that people can use the right amount of money for their needs. You should get through the process to make things more divisible in reaching your goals.
Money should be standardized in design and appearance, making it easily recognizable and distinguishable from other forms of currency. Uniformity prevents counterfeiting and confusion. Uniformity in the process will make things easier for you to get the uniform value of your money in all possible manner.
Money must be widely accepted as a medium of exchange within a given economy or community. People must have confidence that others will accept it in exchange for goods and services. Money is a acceptable option for the medium of exchange that you must be well aware of. Tryout the perfect solution that can make things perfect in all possible manners.
Each unit of money should be interchangeable with another unit of the same denomination. In other words, all units of the same value are identical and can be used interchangeably. It is one of the crucial features of money that makes it a trusted medium of exchange.
7. Limited Supply
Money should not be overly abundant, or its value could be severely diminished. There should be a controlled and limited supply of money to maintain its value.
You need to know the features of money to get things done perfectly. The value of the money you will understand once you know the features of it perfectly. You need to get through the process to use the true value of money.
Does Money Have Any Functions Over Store Of Metal/Store Of Value?
Which of the following is not a function of money? The appropriate answer for this question is the store of metal or the store of value. What do you understand by the term store of value or the metal? Both of these two terms are pointing towards one direction of the asset. The store of metal or the value is representing the assets.
This store of metal or the store of value is not the function of money. But it has connections with the currency. This is because the store of metal and asset value does not depend upon the country’s economic structure. According to the global market price, these price metal prices are defined.
Hence the asset value is remaining in stable positions rather than the monetary value. This is why most people who want to preserve some money for the future always want to make some assets for the future.
Wrapping It Up:
Now you know the score of value and the metal is the right answer for which of the following is not a function of money? Among these four available options, only the store of value is representing the term assets. And the other three options are the main three functions of money. So what is your opinion? If you want to share your point of view, use the comment sections.
Medium Of Exchange Store Of Metal Store Of Value Unit Of Account which of the following are functions of money? which of the following is not a function of money quizlet which of the following is not one of the functions of money? which one of the following is not a function of money?