Which of the following is NOT a function of money in an economy?

Money serves several essential functions in an economy, and understanding these functions helps clarify why the selected answer is indeed not one of them.

A medium of exchange is one of the primary functions of money. It facilitates transactions by providing a universally accepted means to buy and sell goods and services, eliminating the inefficiencies associated with barter systems.

The unit of account function allows money to serve as a standard numerical unit of measure that provides a consistent measure of value, making it easier to compare the values of different goods and services. This helps businesses and consumers in their decision-making processes.

Additionally, money acts as a store of value, which means it can retain value over time, allowing individuals to save and defer consumption until a later date. This characteristic is crucial for financial planning and economic stability.

In contrast, the role of a source of credit is not a direct function of money itself. Rather, credit involves borrowing and lending arrangements where money can be loaned to individuals or businesses. While money can be utilized in credit transactions, the function of money does not include being a source of credit. Therefore, identifying the specific functions of money clarifies why the answer regarding credit is the correct choice.