ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The primary of role of money in the economy is to
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help set interest rates at financial institutions.
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provide a mechanism to assist foreign trade.
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serve as a medium of exchange for goods and services.
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identify prices in various markets.
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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: -Medium of exchange. Money’s most important function is as a medium of exchange to facilitate transactions. Without money, all transactions would have to be conducted by barter, which involves direct exchange of one good or service for another.
Detailed explanation-3: -Bobby Seale Quotes Money is the medium of exchange, and it’s how you make things happen.
There is 1 question to complete.