Kavish went to the supermarket with ₹5000 in his wallet to buy groceries for his family. He purchased vegetables, fruits and other household items, paying the respective prices at the counter. Which functions of money were being demonstrated in this real life scenario?

(A) Unit of Labour.

(B) Store of Value.

(C) Medium of Exchange.

(D) Measure of Creditworthiness.

Choose the correct answer from the options given below:

(A) Unit of Labour -> This is not a recognized function of money in economic theory.

(B) Store of Value -> Money stored in Kavish's wallet retained its value until used for purchases, demonstrating this function.

(C) Medium of Exchange -> Money was used to facilitate the transaction between Kavish and the supermarket for goods, clearly demonstrating this function.

(D) Measure of Creditworthiness -> This is not a standard function of money; it relates to credit assessment, not money's primary roles.

Hence, Option 2: (B) and (C) only -> In this scenario, Kavish demonstrated two key functions of money: (1) Store of Value - the ₹5000 in his wallet preserved purchasing power until he needed it, and (2) Medium of Exchange - he used money as an intermediary to acquire goods rather than bartering. These are two of the four primary functions of money, along with Unit of Account and Standard of Deferred Payment, which weren't prominently featured in this cash transaction scenario. -> correct