ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Divisibility
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Acceptability
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Limited Supply
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Store of Value
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Detailed explanation-1: -A medium of exchange is an instrument used to facilitate the exchange of goods and services. Money is a medium of exchange because it allows one party to compensate another without the complication of bartering.
Detailed explanation-2: -The correct option is (C) money. To an economist, money is anything that is generally accepted in payment for goods and services or the repayment of debt.
Detailed explanation-3: -Crowther defines money as ‘anything that is generally acceptable as a means of exchange and at the same time acts as measure and store of value. ‘
Detailed explanation-4: -Money as a Unit of Account Due to money’s use as a medium of exchange for buying and selling and as a value indicator for all kinds of goods and services, money can be used as a unit of account.