Which of the following is not something that money does in an economy?

a. Measure the value of commodities

b. Store the value of commodities

c. Keep the rate of inflation low

d. Allow producers and consumers to trade commodities

The correct answer is:

C) Keep the rate of inflation low.

Explanation:

There are two types of inflation: demand-pull and cost-push.

In demand-pull inflation, the demand for goods and services rises faster than the productive capacity. If a bank rapidly increases the supply of money, the increase in money in the economy will increase demand for goods and services. Businesses cannot significantly increase production and supply remains constant. Prices will rise, resulting in inflation.

Money does not keep the rate of inflation low: (c). I would say that if anything: it allows for it and encourages it: since it is not something we need to survive (imagine if we used food as money) it's easier for us to accept that it looses value.