Why do people primarily own or hold money?
A) because it has a guaranteed nominal return
B) because it can be invested for a guaranteed real return
C) because it can be used directly to buy goods and services
D) because it functions as a unit of account

Question

Quizplus · Accepted Answer

People primarily own or hold money because it can be used directly to buy goods and services. Money serves as a medium of exchange, allowing individuals to acquire goods and services more easily than through barter or other means of exchange. The other options, such as guaranteed nominal or real returns or functioning as a unit of account, may be secondary benefits of owning money, but they do not explain the primary reason why people hold money.

Why Do People Primarily Own or Hold Money