The need for barter is eliminated when money is used as a
A) medium of exchange.
B) measure of the price level.
C) standard of value.
D) hoard of wealth.
E) store of value.

Question

Quizplus · Accepted Answer

Money as a medium of exchange eliminates the need for barter because people can use it to buy and sell goods and services without the need to directly exchange them for other items. While money can also serve as a measure of the price level, standard of value, hoard of wealth, and store of value, these functions do not directly eliminate the need for barter.

The Need for Barter Is Eliminated When Money Is Used