Identify the incorrect statement.
    (A) Money is what money does
    (B) There are many assets which carry functions of money
    (C) In modem sense, money creates instability
    (D) The first and foremost role of money is that it acts as medium of exchange
    (E) Money acts only as convenient unit of account

Choose the correct answer from the options given below:

(C) and (E) only   

The correct answer is Option 3: (C) and (E) only  

(A) "Money is what money does" — This is a correct statement. It emphasizes that the definition of money is based on the functions it performs rather than a specific physical form.

(B) "There are many assets which carry functions of money" — This is also correct. Assets like cheques, credit cards, and digital currencies can perform functions of money, even though they are not physical money.

(C) "In modern sense, money creates instability" — This statement is generally incorrect. Money itself does not inherently create instability; rather, issues like poor monetary policy or economic shocks can cause instability. Money is meant to provide stability in transactions and economic activity.

(D) "The first and foremost role of money is that it acts as a medium of exchange" — This is correct. One of the primary functions of money is to facilitate transactions as a medium of exchange.

(E) "Money acts only as convenient unit of account" — This is incorrect. While money does act as a unit of account, it also serves as a medium of exchange and a store of value.