Money serves as a medium of exchange when
A) it is used to purchase goods and services.
B) there is direct trade of goods and services.
C) it is a basic measure of economic value.
D) it is a means of holding wealth.
E) there is a double coincidence of wants.

Question

Quizplus · Accepted Answer

Money serves as a medium of exchange when it is used to purchase goods and services. This means that it is used as a way to trade one good or service for another, without having to directly exchange one good or service for another.

Money Serves as a Medium of Exchange When