Question

State with reasons the following statement is True or False.
Money is what money does.

• 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 is that money serves as a common medium of exchange where 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. Therefore, money is what it functions for.