Question

1) Primary function of money : Medium of exchange
Transfer of value​

Answer 1

Answer:

First, money serves as a medium of exchange, which means that money acts as an intermediary between the buyer and the seller. Instead of exchanging accounting services for shoes, the accountant now exchanges accounting services for money. This money is then used to buy shoes.

Answer 2

Answer:

Explanation: As the primary function of money acts as a 'medium of exchange', bank deposit is an example of transfer of value, as the value of money is safeguarded to the bank for maintenance and interest-earning and then transferred back. The purchase of securities is a basis of credit for commercial banks.