Which is NOT a primary function of money?

Prepare for UCF's ECO3223 Exam with tailored quizzes, practice flashcards, and multiple-choice questions. Boost your understanding of Money and Banking with detailed explanations.

The primary functions of money include serving as a medium of exchange, a unit of account, and a store of value. Each of these functions plays a crucial role in facilitating economic transactions and maintaining the stability of an economy.

A medium of exchange is essential because it allows people to trade goods and services without the inefficiencies of barter systems. Instead of requiring a direct exchange of goods, money enables transactions to occur more smoothly, making economic activities more efficient.

As a unit of account, money provides a standard measurement for pricing goods and services, allowing individuals and businesses to understand the value of various items easily. This common measure simplifies economic calculations and comparisons, contributing to a more organized marketplace.

The store of value function allows individuals to save and preserve their wealth over time. Money can be saved and used for future purchases, making it a reliable means of maintaining purchasing power.

In contrast, acting as a tax collector is not a function of money itself; rather, it relates to governmental functions in the context of fiscal policy and taxation processes. While money may be used to pay taxes, it does not inherently perform the role of collecting taxes. Therefore, this option is not a primary function of money, making it the correct choice in this context.

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