The Development of Money as a Medium of Exchange Has

question 188

Multiple Choice

The development of money as a medium of exchange has facilitated the expansion of trade because

• A) holding money increases people's wealth.
• B) holding money increases people's income.
• C) money eliminates the "double coincidence of wants" problem.
• D) no other mediums of exchange are available.

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Definitions:

Accounts Payable

Money owed by a business to its suppliers shown as a liability on the company's balance sheet.

Expenses Paid

Funds that have been disbursed to cover the costs incurred by a business or individual.

Payment of Liability

The process of discharging obligations or debts by transferring assets, typically cash, to the creditor or lender.

Purchase of Asset

The act of acquiring a tangible or intangible resource that is expected to provide benefits to a business over multiple periods.