Using money as a ________ avoids the problem of the double coincidence of wants.
A) medium of exchange
B) measure of value
C) standard of deferred payment
D) store of value
E) tool of monetary policy

Question

Quizplus · Accepted Answer

A medium of exchange is something used to facilitate transactions, and money is the most common medium of exchange. The double coincidence of wants refers to the situation where two parties need to have what the other wants in order to exchange goods or services, which can be a difficult and inefficient process. By using money as a medium of exchange, people can transact more easily without needing to find someone with an exact match of wants and needs. The other choices are also important functions of money but are not directly related to the double coincidence of wants.

Using Money as a ________ Avoids the Problem of the Double