The term 'medium of exchange' for money refers to its use as:
A) coinage.
B) currency.
C) something that is widely accepted as payment for goods and services.
D) any standard of value that prices can be expressed in.

Question

Quizplus · Accepted Answer

When money is referred to as a "medium of exchange," it means that it is being used as something that is widely accepted as payment for goods and services. This definition is specific to the function of money as a means of facilitating transactions. While coinage and currency can be considered mediums of exchange, they are not the only ways in which money is used to facilitate transactions. Similarly, while money can be used as a standard of value, this is a different function than its use as a medium of exchange.

The Term 'Medium of Exchange' for Money Refers to Its