How does money function as a medium of exchange?
A. It holds its value over time or when transferred.
B. It has a value determined by the government.
C. It helps consumers compare the value of products.
D. It allows people to more easily buy and sell products.
Answer (2)
Money functions as a medium of exchange by allowing easier buying and selling of products, streamlining transactions compared to barter systems. This effectiveness is due to the universal acceptance of money, enabling trade without needing a direct exchange of goods. It simplifies the process and increases the efficiency of economic activities. ;
Money functions as a medium of exchange by simplifying buying and selling processes, allowing transactions to occur without the complications of barter systems. The correct answer is D, which highlights how money makes transactions easier. This promotes efficiency in economic activities and allows consumers to compare values easily.
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