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

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Money serves several key functions in an economy, primarily acting as a medium of exchange, a unit of account, and a store of value.

As a medium of exchange, money facilitates transactions between buyers and sellers, eliminating the inefficiencies associated with barter systems where goods and services must be exchanged directly. This function is vital as it allows for a more efficient allocation of resources.

The unit of account function means that money provides a standard measure of value, making it easier for individuals and businesses to compare the worth of various goods and services. This standardization helps simplify pricing and accounting.

The store of value function allows individuals to save and hold wealth in the form of money, which can be used to make purchases in the future. This function is crucial for saving and planning for future expenses.

In contrast, the source of credit refers to the means by which individuals and businesses obtain loans or financing, which is not a core function of money itself. While money can facilitate credit transactions when used as collateral or a means of repayment, it does not inherently provide credit. Thus, this option is not considered one of the fundamental functions of money in the economy.

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