Question

Medium of exchange is a primary function of money.

• A. True
• B. False

Answer 1

The correct option is A True

Money refers to a common medium of exchange that is issued under the law of government and acts as a legal tender for the whole country. The primary function of money includes money as a medium of exchange where it refers to a function of money in which money is considered as a mode of exchanging goods. This function of money solved the main problem of barter system which was double coincidence of wants.