ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Store of Value
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Unit of Account
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Medium of Exchange
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Barter System
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Detailed explanation-1: -Money is a liquid asset used to facilitate transactions of value. It is used as a medium of exchange between individuals and entities. It’s also a store of value and a unit of account that can measure the value of other goods.
Detailed explanation-2: -A medium of exchange is anything that is used to determine value during the exchange of goods and services.
Detailed explanation-3: -Money is called medium of exchange because money is a widely accepted token that can be used for exchange of any good or service. In old days, barter system was used as medium of exchange and later it was gold.
Detailed explanation-4: -Medium of Exchange: Right from the beginning, money has been performing the important function of medium of exchange in the society. Money facilitates transactions of goods and services as a medium of exchange. Producers sell their goods to wholesalers in exchange of money.
Detailed explanation-5: -Money serves as a medium of exchange, as a store of value, and as a unit of account.