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.(4 points)

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.(4 points)
Responses

Unit of Account
Unit of Account

Medium of Exchange
Medium of Exchange

Uniformity
Uniformity

Store of Value
Store of Value

Portability

GPT-4o mini · Answer

In the context you provided, cattle serve the following functions of money:

Unit of Account: Cattle are used to price goods and services, which means they provide a common measure of value.
Medium of Exchange: Cattle are accepted as payment for goods and services, fulfilling the function of facilitating transactions.

While cattle may have some characteristics that are related to other functions of money (like store of value or portability), the two primary functions they serve in this scenario are as a unit of account and a medium of exchange.