Money serves as a medium of exchange when:
a. It is used to purchase goods and services
b. There is direct trade of goods and services
c. It is a basic measure of economic value
d. It is a means of holding wealth
Functions of Money:
Money has three primary functions: it serves as a medium of exchange, store of value, and unit of account. The conditions under which money is being used to determine which of the three is being served.
Answer and Explanation:
Before discussing money serving as a medium of exchange, the other two should be discussed. First, money can act as a store of value. This occurs when...
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from Economics 102: MacroeconomicsChapter 11 / Lesson 4
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