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

Question

Quizplus · Accepted Answer

Money acts as a medium of exchange when it is used to facilitate a transaction between two parties. It allows for the purchase of goods and services without the need for bartering or exchanging goods for other goods. While money can also serve as a store of value, unit of accounting, and unit of investment, in the context of a market transaction, its primary function is to serve as a medium of exchange.

When Money Is Accepted as Payment in a Market Transaction