Which of the following illustrates the medium-of-exchange function of money?
A) writing a check to buy a new Volkswagen
B) noting that the price of a $20,000 Volkswagen is 16,000 euros
C) keeping $20,000 in cash in your mattress instead of buying a new Volkswagen
D) driving your $20,000 Volkswagen to a friend's house

Question

Quizplus · Accepted Answer

Writing a check to buy a new Volkswagen is an example of using money as a medium of exchange, as the check serves as a substitute for physical currency in the transaction. B, C, and D do not involve the direct use of money as a medium of exchange.

Which of the Following Illustrates the Medium-Of-Exchange Function of Money