The use of money as a medium of exchange helps reduce the inefficiencies inherent in
A) unstable commodity values.
B) an inflationary period.
C) a time of political uncertainty.
D) a barter economy.

Question

Quizplus · Accepted Answer

In a barter economy, there is no standardized exchange medium, which can lead to transactional inefficiencies such as difficulty in finding trading partners, lack of agreement on the relative value of goods and services, and difficulties in making change. Money, as a standardized medium of exchange, reduces these inefficiencies.

The Use of Money as a Medium of Exchange Helps