Which of the following is NOT a function of money? 1. Medium of exchange 2. Unit of account 3. Store of value 4. Means of production
Answer
Means of production
The correct answer is Means of production — Hence the correct choice is option 4.
Step-by-step solution
- Identify the four recognized functions of money: medium of exchange, unit of account, store of value and standard of deferred payment.
- Compare each option with the list of functions.
- Options 1, 2 and 3 match the three functions of money.
- Option 4 (means of production) is not a function of money, it is a factor of production.
- Hence the correct choice is option 4.
Common mistake: Choosing ‘store of value’ as the non‑function because students sometimes think it is less important than the other three.
Concept tested: Functions of money
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