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The function of money illustrated by the payments you make for the things you buy is the? a....

Question:

The function of money illustrated by the payments you make for the things you buy is the?

a. medium of exchange

b. measure of value

c. standard of deferred payments

d. store of value e. source of liquidity

Barter:

Barter was a system of exchange preceding to money where the participants of the market exchanged good directly in return for another good without using any medium of exchange such as money. Barter was usually used in pre-modern societies and goods were exchanged in one market place where the exact value could be haggled. This was also very limiting for the people since they always had to find exactly the one person who offers what they need and at the same time wants to buy what they offer.

Answer and Explanation:

The function of money illustrated by the payments you make for the things you buy is the?

a. medium of exchange

A is correct. Since the function of...

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What is Money? - Definition and Types

from Economics 102: Macroeconomics

Chapter 11 / Lesson 4
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