Because money eliminates the "double coincidence of wants" problem, the development of money as a ________ has facilitated the expansion of trade.

Question

Quizplus · Accepted Answer

Money as a medium of exchange allows for a seller to accept it in exchange for goods or services without needing to find someone who has the exact goods or services the seller wants in exchange. This facilitates the expansion of trade as it eliminates the need for the "double coincidence of wants," which can be a barrier to trade. The other choices, unit of account, store of value, and measure of value, are also functions of money, but do not directly relate to the elimination of the "double coincidence of wants" problem.

Because Money Eliminates the "Double Coincidence of Wants" Problem, the Development