Which term is defined as a medium of exchange, a good that can be used to buy other goods and services?

Which term is defined as a medium of exchange, a good that can be used to buy other goods and services?

• A. Money
• B. Net Worth
• C. Natural Resources
• D. Need

Answer: (A)

Money fits this definition because it is widely accepted as payment for goods and services, making trade easier than barter by eliminating the need to find someone who wants exactly what you have and also has what you want. It also standardizes value, which helps businesses price products and manage cash flow over time. Net worth, on the other hand, is a measure of what you own minus what you owe, not something used to purchase goods. Natural resources are valuable inputs or assets, not a universal medium of exchange. A need is something people require, not a transaction medium.

Money fits this definition because it is widely accepted as payment for goods and services, making trade easier than barter by eliminating the need to find someone who wants exactly what you have and also has what you want. It also standardizes value, which helps businesses price products and manage cash flow over time. Net worth, on the other hand, is a measure of what you own minus what you owe, not something used to purchase goods. Natural resources are valuable inputs or assets, not a universal medium of exchange. A need is something people require, not a transaction medium.