The correct answer is Option 1: medium of exchange
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Medium of Exchange: This is a primary function of money. It allows money to be used to facilitate transactions by acting as an intermediary in the exchange of goods and services.
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Standard of Deferred Payments: This is a secondary function of money. It allows money to be used to settle debts and make future payments.
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Store of Value: This is also a secondary function of money. It enables money to retain value over time, so it can be saved and used in the future.
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Transfer of Value: This is considered a secondary function of money, allowing it to be used to transfer purchasing power from one person to another.
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