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Store owners in the U.S. accept dollars for the purchase of goods and services. Every day, you have woken up and believed that the exchange of dollars for goods and services could occur. Why?Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.aMoney is a unit of account.bMoney is a medium of exchange.cMoney serves as a store of value.dMoney is a commodity.

Question

Store owners in the U.S. accept dollars for the purchase of goods and services. Every day, you have woken up and believed that the exchange of dollars for goods and services could occur. Why?Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.aMoney is a unit of account.bMoney is a medium of exchange.cMoney serves as a store of value.dMoney is a commodity.

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Solution

The answer is b. Money is a medium of exchange. This means that it is an intermediary instrument, such as coins and banknotes, used to buy or sell goods or services. The belief that you can exchange dollars for goods and services is based on the function of money as a medium of exchange.

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