Single Answer MCQ
Q-00045468
What is the primary function of money in an economy?
1
To serve as a medium of exchange
2
To store wealth
3
To act as a unit of account
4
To hold value over time
Answer and Solution
Answer
A. To serve as a medium of exchange
Solution:
Money primarily functions as a medium of exchange, allowing people to trade goods and services conveniently. While it stores wealth and serves as a unit of account, its main purpose is to simplify transactions.
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