Which of the following functions of money enables society to gain the beneﬁts of geographic and labor specialization?
A) unit of account
B) store of value
C) medium of exchange
D) medium of deferred payment

Question

Quizplus · Accepted Answer

The medium of exchange function of money allows for easier transactions and facilitates trade, which in turn encourages geographic and labor specialization. With money serving as a medium of exchange, individuals and businesses can focus on producing goods and services in which they have a comparative advantage, while also being able to easily acquire goods and services that they need or want from others. This specialization and exchange can lead to greater economic efficiency and overall prosperity.

Which of the Following Functions of Money Enables Society to Gain