Question

which function of money describes its ability to enable trade between different people?
a. measure of value
b. medium of exchange
c. standard of deferred payment
d. store of value

Explanation:

• Measure of value: Lets goods/services be priced uniformly.
• Medium of exchange: Facilitates trade between parties by being accepted as payment.
• Standard of deferred payment: Enables future debt settlements.
• Store of value: Preserves purchasing power over time.

The question asks for the function enabling trade, which matches medium of exchange.

Answer:

B. Medium of exchange