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Cambridge IGCSE Economics practice

What is the primary function of money as a medium of exchange?

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Show answerMoney and banking revisionRevise the key idea

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MCQ

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cambridge_mcq

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Topic

Money and banking

Exam-style question

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What is the primary function of money as a medium of exchange?.

  1. A.To store value
  2. B.To facilitate transactions
  3. C.To measure economic performance
  4. D.To provide credit

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Paper 2 structured question: Money and banking

Paper 2Structured Questions1 marks

Description

Functions of Money

Money serves three primary functions in an economy: as a medium of exchange, a unit of account, and a store of value. Each function plays a crucial role in facilitating economic transactions and stability.

  1. a

    State the three primary functions of money.

    Aim for approximately 1 distinct marking point.

    [1]