When money is accepted as payment in a market transaction, it is functioning as a
A) store of value.
B) unit of accounting.
C) medium of exchange.
D) unit of investment.

Question

Quizplus · Accepted Answer

Money acts as a medium of exchange when it is accepted as payment in a market transaction. This means that money is being used as a tool to facilitate the exchange of goods or services between parties. Money also functions as a store of value and a unit of accounting, but these functions are not directly related to the use of money as a medium of exchange in market transactions. Unit of investment is not a correct choice as money is not an investment in and of itself, but rather a means of facilitating investments.

When Money Is Accepted as Payment in a Market Transaction