The demand for money is based primarily on money's role as a(n):
A)measure of wealth.
B)medium of exchange.
C)standard of economic well-being.
D)interest-bearing asset.
E)non-interest-bearing asset.

Question

Quizplus · Accepted Answer

The demand for money is primarily based on its role as a medium of exchange, meaning it is used to facilitate transactions and purchase goods and services. Money serves as a convenient and widely accepted means of exchange, making it essential to the functioning of the economy. While money can also serve as a store of value or unit of account, these roles are secondary to its function as a medium of exchange.

The Demand for Money Is Based Primarily on Money's Role