ECONOMICS
MONEY
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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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Money is accepted in exchange for goods/services
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Money is a measurement of value
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Money can maintain value over time
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None of the above
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Explanation:
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: -Currency is a medium for exchange of goods and services.
Detailed explanation-3: -Modern currency is accepted as a medium of exchange because it is authorized by the central government of a country.
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.
There is 1 question to complete.