Forums Economics Assignment Help GCSE Which function of money does the above statement relate to?

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    nammy
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    ‘If money didn’t exist then I would have to hope that the person selling the item I wanted to buy also wanted to buy an item I had for sale.’ Which function of money does the above statement relate to?
    A. Medium of exchange
    B. Means of deferred payment
    C. Store of value
    D. Unit of account

    #16071

    nammy
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    Answer: A- Medium of Exchange
    Reason: Money removes the inefficiencies of the barter system i.e. if there is failure of double coincidence of wants, and then the transaction will not take place. Thus, money being a medium of exchange facilitates the transactions.

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