Which of the Following Is an Advantage of Using Money

question 109

Multiple Choice

Which of the following is an advantage of using money as a medium of exchange?

• A) It simplifies purchases because all prices are specified in money values.
• B) There is no interest charged on using money for purchases.
• C) It is easy to mass produce money.
• D) It avoids having to rely on barter, the exchange of one good or service for another.

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Definitions:

Third Party

An individual or entity that is involved in a transaction but is not one of the principal parties directly involved in the deal or contract.

Alimony

Financial support paid by one ex-spouse to the other as mandated by a court order or divorce agreement, with tax implications varying before and after the 2019 tax laws.

Student Loan Interest

Interest that accrues on money borrowed to fund education, which can sometimes be tax-deductible.

Deduction Limit

Maximum amount that can be deducted from taxable income for certain expenses or contributions, as specified by tax laws.