Moneyʹs function as a medium of exchange means that
A) money can be used to store wealth.
B) money requires a double coincidence of wants.
C) money serves as an acceptable means of payment.
D) money is a common denominator for expressing the prices of goods and services.

Question

Quizplus · Accepted Answer

Money's function as a medium of exchange means that it serves as an acceptable means of payment. This means that it can be easily and widely used to purchase goods and services without requiring a double coincidence of wants. While money can be used to store wealth and is a common denominator for expressing prices, these are not directly related to its role as a medium of exchange.

Moneyʹs Function as a Medium of Exchange Means That