When something is generally accepted as a means of payment, such as grain in many traditional societies, we say that this represents
A)money as a medium of exchange.
B)money as a store of value.
C)money as a unit of wealth.
D)an inflationary danger.
E)a government opportunity for social control.

Question

Quizplus · Accepted Answer

When something is widely accepted as a means of payment, it is functioning as money's primary function as a medium of exchange. The other functions of money are store of value and unit of account. The choices D and E are not relevant to the given scenario.

When Something Is Generally Accepted as a Means of Payment