Which statement best illustrates the medium of exchange function of money?
A) You keep some money hidden in your shoe.
B) Your recent tax assessment has valued your condo at $200,000..
C) You pay for your double latte using currency.
D) You lend $25 to your friend.

Question

Quizplus · Accepted Answer

The medium of exchange function of money describes its ability to be used as a method of payment for goods and services. Paying for a coffee with currency exemplifies this function. The other choices do not involve the direct use of money as a method of payment.

Which Statement Best Illustrates the Medium of Exchange Function of Money