Final answer:
Money has several functions in an economy, usually identified as a medium of exchange, a store of value, and a unit of account. A 'signaling mechanism' is not traditionally recognized as a function of money. Thus, the correct option, which is not a function of money, is 'b. signaling mechanism'.
Step-by-step explanation:
Functions of Money
The concept of money plays a critical role in our economy, fulfilling several key functions. These functions are traditionally defined as a medium of exchange, a store of value, a unit of account, and, though not mentioned in the provided material, a standard of deferred payment. When determining which options listed are not a function of money, we can see that 'b. signaling mechanism' does not traditionally belong to the established functions of money.
Medium of Exchange
As a medium of exchange, money is utilized to facilitate transactions, allowing individuals to purchase goods and services without the need for bartering, providing immense economic efficiency.
Store of Value
Money serves as a store of value because it can be saved and retrieved in the future, maintaining its worth over time, despite potential inflation or other economic fluctuations.
Unit of Account
Finally, acting as a unit of account, money provides a standard numerical unit for the measurement of value, simplifying the process of price setting and economic calculation.
In light of this, the correct option is 'b. signaling mechanism', as it is not a recognized function of money.