Final answer:
The function of money illustrated in the scenario where a homeowner uses a $10 bill to pay for lawn care, which is then used by the service provider to buy dinner, is the transfer of value.
Step-by-step explanation:
The correct answer is D. Transfer of value. When the homeowner pays the neighbor, and the neighbor uses that same $10 bill to buy dinner, what's being demonstrated is the ability of money to facilitate transactions. This is known as the transfer of value, where money changes hands as goods and services are exchanged without losing their worth.
Although money does serve as a store of value and as a standard of deferred payment, these concepts do not primarily describe the situation. The store of value function refers to money's ability to hold its value over time, and the standard of deferred payment means money can be used for transactions that will be settled in the future. The measure of value, on the other hand, is about providing a common standard to measure the worth of goods and services, not directly relevant to the transfer in the scenario.