Asked by Trinity Honaker on May 08, 2024
Verified
Which of the following functions as both a store of value and a medium of exchange?
A) Cash and stocks
B) Cash but not stocks
C) Stocks but not cash
D) Neither cash nor stocks
Store Of Value
An asset that can be saved, retrieved, and exchanged at a later time, and be predictably useful when retrieved.
Medium Of Exchange
A tool that assists in the buying, selling, or exchanging of goods among different parties.
Cash
Liquid currency including coins and banknotes that is used to facilitate transactions and settle debts.
- Attain an understanding of the basic functionalities of money and why it is significant in economic contexts.
Verified Answer
LD
Laura DamonMay 15, 2024
Final Answer :
B
Explanation :
Cash serves both as a store of value and a medium of exchange, allowing it to be saved and readily used for transactions. Stocks, while a store of value, are not commonly used as a medium of exchange for everyday transactions.
Learning Objectives
- Attain an understanding of the basic functionalities of money and why it is significant in economic contexts.