Question

Which of the following is correct in respect of “money as a medium of exchange”?

(i) Money facilitates the exchange of goods.

(ii) Money reduces or eliminates the need for barter.

(iii) Money is an object that sellers will accept as payment.

A. only (i) is correct.

B. only (iii) is correct.

C. (i), (ii) and (iii) are correct.

D. only (i) and (ii) are correct.

Answer 1

C. (i), (ii) and (iii) are correct.

This is because in all the cases money is described as a medium of exchange which is true.