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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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