When it is a means of paying for goods and services and discharging debts, money is referred to as a
A) store of purchasing power
B) medium of exchange
C) standard of value
D) liquid asset

Question

Quizplus · Accepted Answer

When money is used to pay for goods and services, it is functioning as a medium of exchange. This is one of the primary functions of money, along with serving as a store of purchasing power and a unit of account. While money can be a liquid asset, this refers more to the ease with which it can be converted to cash, rather than its function as a means of paying for goods and services.

When It Is a Means of Paying for Goods and Services