When Money Is Used as a Medium of Exchange

question 86

Multiple Choice

When money is used as a medium of exchange

• A) the need for a barter system diminishes.
• B) the cost of transactions increases.
• C) the need for a banking system in the economy decreases.
• D) it reduces the number of transactions in the economy.

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Definitions:

Probability

An indication of how probable an event is to happen, represented by a numerical value ranging from 0 to 1.

Red Die

A single six-sided gaming cube that is red, typically used in board games and probability exercises.

Green Die

A dye or pigment that produces a green color, potentially used in manufacturing or artistic applications.

Independent

Not influenced by or contingent on something else; in statistics, two events are independent if the occurrence of one does not affect the probability of the other.