Question

Money is accepted as a 'medium of exchange' because _____.

• A. Money can create loan
• B. Money adds to the value of a commodity
• C. Money is portable
• D. Money facilitates the process of exchange

Answer 1

Answer: (D)

Money facilitates the process of exchange

• In the olden times, barter system was used by people to exchange services and goods for other services and goods in return. The exchange of goods system had created problems h were solved with the introduction of money. Money is used medium of exchange and for storage of value.