Which one of the following is not a function of money ?

examrobotsa's picture
Q: (CDS-I/2021)

Which one of the following is not a function of money ?

question_subject: 

Science

question_exam: 

CDS-I

stats: 

0,37,23,2,12,9,37

keywords: 

{'exchange process': [0, 0, 0, 1], 'consumption': [2, 4, 6, 10], 'value': [0, 0, 1, 0], 'money': [2, 0, 2, 10], 'account': [2, 0, 3, 3], 'function': [11, 2, 3, 13], 'unit': [0, 1, 5, 10], 'store': [0, 1, 0, 1]}

The correct answer is option 4, which states that money is not used for regulating consumption. To understand this, we need to analyze each option:

Option 1 states that money acts as an intermediate in the exchange process. This means that money is used as a medium of exchange to facilitate transactions. When individuals buy goods or services, they use money to pay for them, making transactions more convenient and efficient.

Option 2 states that money acts as a store of value. This means that money can be saved and held over time to be used in the future. Money retains its value over time, allowing individuals to store their wealth and make future purchases.

Option 3 states that money is used as the unit of account. This means that money is used as a common measure of value for goods, services, and assets. This allows for easy comparisons of prices and values.

Therefore, option 4, which suggests that money is used for regulating consumption, is incorrect. Money is not directly involved in regulating consumption patterns or controlling individuals` spending habits. Instead, money serves as a tool for facilitating transactions, storing value, and acting as a common measure of value.