Using Money as a Medium of Exchange

question 99

Multiple Choice

Using money as a medium of exchange:

• A)requires people to match goods wanted with goods available.
• B)inhibits economic transactions.
• C)reduces the need for barter in the economy.
• D)reduces the need for a banking system.
• E)reduces the range of feasible exchanges in the economy.

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Definitions:

Campaign Finance

Refers to the funding of political campaigns, including the regulation and disclosure of where the money comes from and how it is spent.

Independent Expenditures

Expenses made by individuals or groups to support or oppose a political candidate or issue, without coordination with any candidate’s campaign.

Presidential Election

A process in which citizens of a country vote to elect the president, the head of the executive branch of the government.

Free-Rider Problem

A situation in which individuals benefit from resources or services without paying for them, which can lead to under-provision or depletion of those resources.