Which of the following best illustrates the medium of exchange function of money?
A)You keep some money hidden in your shoe.
B)You keep track of the value of your assets in terms of currency.
C)You pay for your double latte using currency.
D)You lend $25 to your friend.

Question

Quizplus · Accepted Answer

Paying for a product or service using currency is the most direct and common example of the medium of exchange function of money. Money serves as a medium of exchange by facilitating transactions between buyers and sellers.

Which of the Following Best Illustrates the Medium of Exchange