Responses
Money is primarily used for saving wealth.
Money is primarily used for saving wealth.
Money does not help in facilitating trade.
Money does not help in facilitating trade.
Money serves three essential functions: medium of exchange, store of value, and unit of account.
Money serves three essential functions: medium of exchange, store of value, and unit of account.
Money can only serve as a medium of exchange.
Money can only serve as a medium of exchange.
Question 2
How does money enhance the efficiency of transactions compared to bartering?(1 point)
Responses
It requires finding a partner with the right goods.
It requires finding a partner with the right goods.
It complicates the trading process.
It complicates the trading process.
It eliminates the need for a common measure of value.
It eliminates the need for a common measure of value.
It allows for immediate exchanges without negotiation.
It allows for immediate exchanges without negotiation.
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1 answer
For your first question:
True Statement: "Money serves three essential functions: medium of exchange, store of value, and unit of account."
This statement accurately describes the primary functions of money.
For your second question:
Correct Answer: "It allows for immediate exchanges without negotiation."
This emphasizes how money facilitates transactions by providing a common medium that can be used immediately, rather than requiring the complex negotiations of a barter system.
