The use of money as a medium of exchange I. lowers transaction costs.
II) permits more specialization.
A) I only
B) II only
C) Neither I nor II
D) Both I and II

Question

Quizplus · Accepted Answer

Money as a medium of exchange helps in lowering transaction costs by eliminating the need for barter and facilitates more specialization by allowing the exchange of goods and services without the need for a double coincidence of wants. Hence, both statements I and II are correct.

The Use of Money as a Medium of Exchange I