When Economists Say That Money Serves as a Medium of Exchange

question 251

Multiple Choice

When economists say that money serves as a medium of exchange, they mean that it is

• A) a way to keep wealth in a readily spendable form for future use.
• B) a means of payment.
• C) a monetary unit for measuring and comparing the relative values of goods.
• D) declared as legal tender by the government.

---

Definitions:

Prior Experiences

previously encountered events or situations that influence an individual's current thinking, behavior, or learning.

Experimental Research

A systematic and scientific approach to research in which the researcher manipulates one or more variables to determine their effect on another variable.

Sigmund Freud

An Austrian neurologist known for founding psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Unconscious Determinants

Factors that influence behavior and emotions without an individual's conscious awareness.