Question

currency ______.
a. is inconsistent in an economy
b. means the price for a good or service cannot change
c. is a unit of exchange used for the purchase of goods and services
d. is based on the value of gold in the united states
e. uses barter for a means of exchange

Explanation:

• Option A: Currency is consistent in an economy as a medium of exchange, so A is wrong.
• Option B: Currency doesn't fix prices; prices can change, so B is wrong.
• Option C: By definition, currency is a unit of exchange for buying goods and services, so C is correct.
• Option D: Modern US currency isn't based on gold (fiat currency), so D is wrong.
• Option E: Currency replaces barter, so E is wrong.

Answer:

C. is a unit of exchange used for the purchase of goods and services