Which of the following is NOT a function of money?

The correct answer is that an investment portfolio is not a function of money. The primary functions of money in an economy are to serve as a medium of exchange, a unit of account, and a store of value.

When we refer to money as a medium of exchange, we mean that it is widely accepted in transactions for goods and services, facilitating trade and reducing the inefficiencies associated with barter systems. As a unit of account, money provides a standard measure of value, allowing individuals and businesses to compare the worth of different goods and services easily. Lastly, money serves as a store of value, meaning it can preserve purchasing power over time, enabling individuals to save for future purchases.

In contrast, an investment portfolio consists of financial assets such as stocks, bonds, or other investment vehicles, which serve different purposes, including wealth growth and income generation. While these assets may provide returns that increase a person's wealth, they do not fulfill the fundamental functions of money. Thus, an investment portfolio does not qualify as a function of money.