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

uniformity
uniformity

unit of account
unit of account

GPT-4o mini · Answer

In the scenario described, cattle primarily function as:

Medium of exchange - Cattle are widely accepted as payment for goods and services, serving the role of facilitating transactions.
Unit of account - Goods and services are priced in terms of cattle, allowing for a common measure to compare values.

Cattle do not serve well as a store of value due to their varying quality and depreciation with age, and they are also not particularly portable because they are difficult to move over long distances. Therefore, the correct answers are medium of exchange and unit of account.