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

unit of account
unit of account

store of value
store of value

uniformity
uniformity

portability
portability

medium of exchange

GPT-4o mini · Answer

In the scenario described, cattle serve the following functions of money:

Unit of account - Cattle are used to price goods and services, which means they provide a standard measure for valuing transactions in the economy.
Medium of exchange - Cattle are widely accepted as payment for goods and services, facilitating trade.

The correct answers are:

unit of account
medium of exchange

(Note: While cattle may have some limitations on storing value due to their perishability and varying quality, they do not effectively meet the criteria for store of value compared to other forms of money.)