Money is differentiated from other assets due to
A) its value as a medium of exchange.
B) its value of facilitating government spending.
C) its value as a unit of account.
D) its invulnerability to inflation.
E) its value as smoothing out business cycles.

Question

Quizplus · Accepted Answer

Money is primarily used as a medium of exchange to facilitate transactions between individuals, businesses, and governments. While it can also serve as a unit of account and store of value, its primary function is to be easily exchanged for goods and services, making it unique among other assets. Money is not invulnerable to inflation and does not necessarily smooth out business cycles.

Money Is Differentiated from Other Assets Due to