The Medium-Of-Exchange Function Means That Money Is Used

question 122

Multiple Choice

The medium-of-exchange function means that money is used:

• A) as the common denominator of prices.
• B) as the common denominator of future payments.
• C) to pay for goods and services.
• D) to accumulate purchasing power.

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Definitions:

Ego

In psychoanalytic theory, the part of the personality responsible for dealing with reality, balancing the demands of the id and the superego.

Reality Principle

A concept in psychoanalytic theory describing the ability of the ego to assess the external world and act in a manner that is realistic and socially appropriate.

Defense Mechanism

Psychological strategies employed by individuals to cope with reality and maintain self-image by managing stress, emotional conflict, or internal/external demands.

Projection

A psychological strategy in which people project their own undesirable emotions, thoughts, or desires onto someone else.