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Which of the following is not a function of money:

  • A.Medium of exchange
  • B.Standard of deferred payments
  • C.Index of prices
  • D.Unit of account

Answer: C

The functions of money are a medium of exchange, a unit of account, a store of value and a standard of deferred payments. An index of prices is not a function of money, as the price index is measured using money but is not something money does. The answer is index of prices, option C.

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