Which of the following is not a function of money?
Answer Details
The option that is not a function of money is "Determinant of exchange of medium."
Money serves five main functions, which are:
1. Medium of exchange: Money is used as a medium of exchange in the exchange of goods and services. It eliminates the need for the barter system, where goods are exchanged for other goods.
2. Unit of account: Money serves as a common unit of measurement of value, making it easy to compare prices of different goods and services.
3. Store of value: Money can be stored and used later as a means of exchange. It preserves the value of wealth over time, allowing individuals to accumulate savings.
4. Standard for deferred payment: Money is used as a standard for deferred payment, such as loans, mortgages, and bonds.
5. Medium of exchange: Money facilitates the exchange of goods and services, making it easier to conduct transactions.
The "Determinant of exchange of medium" is not a function of money because it does not make sense in the context of the other functions. The options listed above cover the essential functions of money, such as facilitating trade, preserving value, and serving as a common unit of measurement. The option "Determinant of exchange of medium" is not a recognized function of money.