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

medium of exchange
medium of exchange

uniformity
uniformity

portability
portability
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GPT-4o mini · Answer

In the scenario described, cattle primarily provide the following two functions of money:

Unit of account - Cattle serve as a measure to value goods and services. Prices are expressed in terms of cattle, which allows for a consistent way to compare the value of different items.
Medium of exchange - Cattle are used as a medium to facilitate transactions for goods and services, allowing people to trade with one another using cattle instead of bartering directly.

Therefore, the correct answers are unit of account and medium of exchange.