The correct answer is Option (1) → (A), (B) and (D) only
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(A) Medium of exchange. This is a primary function of money. It eliminates the need for a "double coincidence of wants" that is characteristic of a barter system, making transactions much easier and more efficient. So, (A) is True.
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(B) Unit of account. Money serves as a common measure of value for goods, services, and debts. It allows us to compare the value of different items (e.g., a car costs X amount, a loaf of bread costs Y amount) and keep financial records. This is also often referred to as a "measure of value." So, (B) is True.
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(C) Unit of purchasing power. While money has purchasing power (the quantity of goods and services a unit of currency can buy), "unit of purchasing power" itself is not one of the fundamental functions of money. Purchasing power is an attribute or a consequence of money's other functions and its value, rather than a distinct function. So, (C) is False .
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(D) Store of value. Money allows people to save their wealth and transfer purchasing power from the present to the future. For money to be an effective store of value, its value should remain relatively stable over time (i.e., not experience high inflation). So, (D) is True.
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