The fact that using money avoids the double coincidence of wants necessary in a barter economy illustrates which function of money?
A) medium of exchange
B) unit of account
C) store of value
D) source of liquidity

Question

Quizplus · Accepted Answer

The medium of exchange function of money means it can be used in transactions to directly acquire goods or services, eliminating the need for a double coincidence of wants that is required in a barter system.

The Fact That Using Money Avoids the Double Coincidence of Wants