Question

Question 4 of 10

Answer 1

Answer:

B. It allows people to buy, sell, and trade goods efficiently.

Explanation:

Medium of exchange refers to an intermediary instrument used to facilitate trade or the transfer of goods and services between parties. An item must be acceptable by the parties involved in the transaction to be used as a medium of exchange. It should represent a fair standard of value.

Money is the most widely used and accepted medium of exchange. It facilitates an easy and quick transfer of goods and services between buyers and sellers. Without money, the selling of goods and services would be conducted on barter trade. Money as a medium of exchange facilitates smooth transactions in business.