The transactions approach to measuring money stresses the role of money as a
A) medium of exchange.
B) unit of accounting.
C) store of value.
D) standard of deferred payment.

Question

Quizplus · Accepted Answer

The transactions approach to measuring money focuses on money's function as a medium of exchange, meaning that it is used to facilitate the exchange of goods and services. The other functions of money (unit of accounting, store of value, and standard of deferred payment) are considered secondary to its primary function as a medium of exchange.

The Transactions Approach to Measuring Money Stresses the Role of Money