Money Serves as a Medium of Exchange When

question 18

Multiple Choice

Money serves as a medium of exchange when:

• A)it is used to purchase goods and services.
• B)there is direct trade of goods and services.
• C)it is a basic measure of economic value.
• D)it is a means of holding wealth.

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Definitions:

Formal Words

Specific language required or recognized by law to create a binding agreement or to perform a legal act.

Guarantee

A formal assurance or promise, often in writing, that certain conditions will be fulfilled, including the quality or durability of a product or the completion of an obligation.

Implied Warranty

An unwritten and unspoken guarantee that a product or service will meet a minimum standard of quality and functionality.

Inference

The process of reasoning and drawing conclusions based on the evidence or premises provided.