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What is the primary function of money?
Question

What is the primary function of money?


A.

It is the basis of distribution of income

B.

It is a store house of goods

C.

It is the basis of debit

D.

It is a medium of exchange

Correct option is D

The correct answer is (D)   ​It is a medium of exchange

  • Money is a globally recognized medium used for transactions.
  • It acts as a means of exchange and a measure of value.
  • Prices and worth are expressed through money, making it an essential tool for trade and communication.
  • As the main unit for accounting and exchange, money facilitates transactions between individuals and across nations, enabling smooth economic activity.

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