Lesson eLearning

Which of the following is NOT a function of money?

easy MCQ 1 mark Class 10 · Economics · Money and Credit
  1. to provide a unit of account
  2. to be a medium of exchange
  3. to be a store of value
  4. to guarantee profit for banks
Answer
to guarantee profit for banks

The correct answer is to guarantee profit for banks — Hence the correct option is (d).

Step-by-step solution

  1. List the main functions of money: medium of exchange, unit of account, store of value, and a means of payment.
  2. Check each option against these functions.
  3. Option (a) "to provide a unit of account" – a function.
  4. Option (b) "to be a medium of exchange" – a function.
  5. Option (c) "to be a store of value" – a function.
  6. Option (d) "to guarantee profit for banks" – not a function of money.
  7. Hence the correct option is (d).
Common mistake: Confusing profit guarantee with a function of money

Concept tested: Functions of money

Published · How this solution was prepared and checked

← All Money and Credit questions