ECONOMICS
FISCAL POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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facilitates transactions by serving as a means of payment
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is legal tender that must be accepted everywhere
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provides a common measure of value for goods and services
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can be saved, stored and retrieved and still have value
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Detailed explanation-1: -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-2: -Money is a system of value that facilitates the exchange of goods in an economy. Using money allows buyers and sellers to pay less in transaction costs, compared to barter trading. The first types of money were commodities. Their physical properties made them desirable as a medium of exchange.
Detailed explanation-3: -Conventional Approach: It takes into consideration only two functions of money, namely, medium of exchange and measure of value.