Question

In a remote village, a person used five beaver pelts to buy a bag of rice and two beaver pelts to buy a pair of shoes. For what purpose did this person use the money? A. increase trade B. store of value C. medium of exchange D. unit of account E. investment

Answer 1

Answer: C, medium of exchange

Explanation:

This is because both parties are trading something that they both need, like a baker and a butcher exchanging goods because they both have something the other wants.