Question

Statement (1): Unit of account is not a primary function of money.

Statement (2): ‘Store of value’ is the primary function of money.

Options

• Both the statements are true.

• Both the statements are false.

• Statement 1 is true, Statement 2 is false.

• Statement 2 is true, Statement 1 is false.

Answer 1

Both the statements are false.

Explanation:

• Statement (1): The primary functions of money are medium of exchange and unit of account.
• Statement (2): “Store of value” is classified as a secondary (or derivative) function of money, not a primary function.