Most of the time it is quite difficult to separate the three functions of money. Money performs its three functions at all times, but sometimes we can stress one in particular. For each of the following situations, identify which function of money is emphasized. Brooke accepts money in exchange for performing her daily tasks at her office, since she knows she can use that money to buy goods and services. In this case, money is being used as a .

In this case, money is being used as a medium of exchange.

Brooke accepts to be paid in money a quantity that is more-or-less proportional to the amount of work she performed, because she knows that later on, she can exchange that money for other goods and services.

To Brooke, the money in itself would be worthless if she could not exchange for other things, and it would be likely that she would demand to be paid in some other way under this scenario. This is why she is highlighting the importance of money as medium of exchange above the other two functions of money.

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