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

uniformity
uniformity

portability
portability

medium of exchange
medium of exchange

store of value
store of value

unit of account

GPT-4o mini · Answer

Cattle in this context serve the following functions of money:

Medium of exchange: Cattle are used widely as a means to pay for goods and services, which is a primary function of money.
Unit of account: Goods and services are priced in terms of cattle, which allows for a standard measure of value for different products.

Therefore, the correct answers are:

Medium of exchange
Unit of account