A medium of exchange is
A) an object that sellers will accept as payment.
B) a measure by which prices are expressed.
C) an asset that is used to settle future debts.
D) the thing traded when barter takes place.

Question

Quizplus · Accepted Answer

A medium of exchange is something that can be used to buy goods and services, and sellers must be willing to accept it as payment. Examples include money, checks, and credit cards.

B, C, and D are incorrect:
B) A medium of exchange is not just a measure of price, but something that can actually be used to buy things.
C) Although a medium of exchange can be used to settle debts, that is not its primary function. Its primary function is to facilitate transactions.
D) Bartering involves the exchange of goods and services without the use of money, so a medium of exchange is not relevant in this context.

A Medium of Exchange Is