ECONOMICS
FEDERAL RESERVE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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medium of exchange
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store of value
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measure of value/unit of account
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None of the above
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Detailed explanation-1: -It means that money can be used to make payments for all the transactions of goods and services. A buyer can buy goods through money, and a seller can sell goods for money. It is an essential function of money.
Detailed explanation-2: -Money facilitates transactions of goods and services as a medium of exchange. Producers sell their goods to wholesalers in exchange of money. Wholesalers, in turn, sell their goods to the retailers and the retailers sell these goods to the consumers in exchange for money.
Detailed explanation-3: -Currency is a medium for exchange of goods and services.
Detailed explanation-4: -Bartering is based on a simple concept: Two individuals negotiate to determine the relative value of their goods and services and offer them to one another in an even exchange.
Detailed explanation-5: -Third: Money is a medium of exchange. This means that money is widely accepted as a method of payment. When I go to the grocery store, I am confident that the cashier will accept my payment of money.