If a small island community primarily engages in barter trade, exchanging goods and services directly without using any form of currency, and the government introduces a new currency, facilitating easier exchange between community members, which function of money will be affected by this scenario? A. Store of value function B. Medium of exchange function c. Unit of account function D. Standard of deferred payment function
If a small island community primarily engages in barter trade, exchanging goods and services directly without using any form of currency, and the government introduces a new currency, facilitating easier exchange between community members, which function of money will be affected by this scenario? A. Store of value function B. Medium of exchange function c. Unit of account function D. Standard of deferred payment function
Chapter14: Money And The Federal Reserve System
Section: Chapter Questions
Problem 2SQ
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Transcribed Image Text:If a small island community primarily engages in barter trade, exchanging goods and services directly without
using any form of currency, and the government introduces a new currency, facilitating easier exchange
between community members, which function of money will be affected by this scenario?
A. Store of value function
B. Medium of exchange function
c. Unit of account function
D. Standard of deferred payment function
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