In a less-developed economy, cattle is widely accepted as payment for goods and services. Nearly all goods and services are priced in terms of cattle; however, cows vary in quality, become less valuable with age, and are difficult to move over long distances. Which of the following functions of money do cattle provide? Select the two correct answers.(1 point)

Question

In a less-developed economy, cattle is widely accepted as payment for goods and services. Nearly all goods and services are priced in terms of cattle; however, cows vary in quality, become less valuable with age, and are difficult to move over long distances. Which of the following functions of money do cattle provide? Select the two correct answers.(1 point)
Responses

store of value
store of value

portability
portability

medium of exchange
medium of exchange

unit of account
unit of account

uniformity

GPT 3.5 · Answer

The two correct functions of money that cattle provide are:

1. Store of value: Cattle can be held and stored for future use or exchange. They retain value over time, although their value may decrease with age.
2. Medium of exchange: Cattle are widely accepted as a means of payment for goods and services in the economy. They can be exchanged for other goods or services.