ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Money helps to facilitate trade because people in the economy generally recognize it as valuable. Since most people recognize money as valuable, they are willing to trade money for goods and services with the intention of one day using the money they received as a seller to buy goods or services from someone else.

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: -The correct answer is d. Money that is widely accepted in exchange for goods and services . In an economy, the medium of exchange function of money refers to the use of money by different individuals to exchange products/services.

Detailed explanation-4: -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.