Question 5

The action represents the store of value function of money.

Depositing half of his salary into a bank account every month illustrates the store of value function of money, as it allows the individual to preserve purchasing power over time.

A) Store of value

This option is correct because the store of value function refers to the ability of money to maintain its value over time, allowing individuals to save and defer consumption. By depositing money into a bank account, the individual is effectively storing value for future use rather than spending it immediately.

B) Unit of account

This option is incorrect. The unit of account function refers to money's role in providing a standard measure of value, which helps in pricing goods and services. While the individual may use money to measure his salary, the act of depositing it into an account does not pertain to this function.

C) Barter

This option is incorrect as barter involves trading goods or services directly for other goods or services without the use of money. The action described—depositing money—does not fit the barter system, as it relies on the use of money itself.

D) Medium of exchange

This option is also incorrect. The medium of exchange function refers to money being used to facilitate transactions for goods and services. While the individual uses money to save, depositing it in a bank does not represent its use as a medium for exchange in transactions.

Conclusion

The correct answer is definitively the store of value because it captures the essence of saving money for future use, which is what the individual is doing by depositing his salary. All other options fail to accurately describe the action of depositing money, as they relate to different functions of money that do not involve saving or storing value.