Copyright

Money serves as a medium of exchange when: a. It is used to purchase goods and services b. There...

Question:

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...

See full answer below.

Become a Study.com member to unlock this answer! Create your account

View this answer

Learn more about this topic:

What is Money? - Definition and Types

from Economics 102: Macroeconomics

Chapter 11 / Lesson 4
164K

Related to this Question

Explore our homework questions and answer library