CIMA BA1 · Chapter 12 · Question 1 of 9
Which of the following is NOT one of the functions of money?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) A guarantee of a positive real return
Explanation
Money acts as a medium of exchange, a unit of account, a store of value and a standard of deferred payment. It does not guarantee a positive real return; inflation erodes the purchasing power of money held.
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