Question

question 5 of 5
why was money created?
as a means of taking advantage of people in lower income brackets.
it was created by the central bank to control interest rates.
to provide the government with quick tax revenue.
to reduce the costs of making transactions in the economy.

Explanation:

Money was created to solve the inefficiencies of barter - like the double - coincidence of wants. It serves as a medium of exchange, unit of account, and store of value, reducing transaction costs. The other options are inaccurate as its creation was not mainly for taking advantage of low - income people, controlling interest rates (which is a later function of central banks), or providing quick tax revenue.

Answer:

D. To reduce the costs of making transactions in the economy.