When money is accepted as payment in a market transaction, it is functioning as a
A) unit of accounting.
B) store of value.
C) unit of investment.
D) medium of exchange.

Question

Quizplus · Accepted Answer

When money is accepted as payment in a market transaction, it is functioning as a medium of exchange, which means it is being used to facilitate the exchange of goods or services. A unit of accounting is a way to measure and record financial transactions, a store of value refers to an asset that can be saved, retrieved and exchanged at a later time, and a unit of investment refers to a measure of the value of an investment.

When Money Is Accepted as Payment in a Market Transaction