ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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portability
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scarcity
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durability
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liquidity
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Detailed explanation-1: -A medium of exchange is an asset that can be used in a transaction to exchange goods and services. Gold and other precious metals have been used as a medium of exchange before money itself, or alongside it. Not every asset can be used as a medium of exchange.
Detailed explanation-2: -In modern economies, the medium of exchange is currency. A currency must remain reasonably stable in value in order for it to work as an intermediary.
Detailed explanation-3: -In economics, a medium of exchange is any item that is widely acceptable in exchange for goods and services. In modern economies, the most commonly used medium of exchange is currency.
Detailed explanation-4: -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.