The Fact That Using Money Avoids the Double Coincidence of Wants

question 44

Multiple Choice

The fact that using money avoids the double coincidence of wants necessary in a barter economy illustrates which function of money?

• A)Medium of exchange
• B)Source of liquidity
• C)Unit of account
• D)Store of value

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Definitions:

Secondary Supply

The provision of goods or services from secondary markets or sources, distinct from primary or direct sources.

Elastic

Describes a situation in which the quantity demanded or supplied of a good is highly responsive to changes in price.

Growth Rate

The percentage increase of a specific variable within a specified time frame, commonly used to measure economic growth, population increase, or company expansion.

Durable Equipment

Equipment that is designed for a long useful life, typically used in business, industrial, or medical settings.