Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Money and Banking

Question:

Which of the following is a "Secondary function" of money?

Options:

Store of value

Medium of exchange

Unit of value

Both 1 and 3

Correct Answer:

Store of value

Explanation:

The correct answer is Option 1: Store of Value

Primary functions are known as original functions. They are medium exchange and measure of value.

  • Store of Value: This is considered a secondary function of money. It refers to money's ability to retain value over time, allowing people to save and use it in the future.

  • Medium of Exchange: This is a primary function of money. It facilitates transactions by serving as an intermediary in the exchange of goods and services.

  • Unit of Value: This is also a primary function of money. It provides a standard measure for the value of goods and services, enabling comparison and valuation.