What is the role of money in an economy?
A) Money serves as a person's wealth.
B) Money allows people to save
C) Money is an investment asset.
D) Money allows greater specialization.

Question

Quizplus · Accepted Answer

Money plays an important role in allowing greater specialization in an economy. With money, individuals can specialize in producing goods or services in which they have a comparative advantage and then use that money to purchase other goods and services they need or desire, rather than relying on the barter system. This leads to greater efficiency and productivity in the economy. While money can also serve as wealth and allow for savings and investment, its primary role in the economy is facilitating trade and specialization.

What Is the Role of Money in an Economy