The use of money as a medium of exchange helps reduce the inefficiencies inherent in:
A) unstable commodity values.
B) an inflationary period.
C) a time of political uncertainty.
D) barter.

Question

Quizplus · Accepted Answer

Barter involves trading one good or service for another without the use of money. This can be inefficient because it requires a coincidence of wants, meaning both parties need to have what the other wants. In contrast, money can be universally accepted and serves as a common medium of exchange, making transactions easier and more efficient.

The Use of Money as a Medium of Exchange Helps