MP Board · Class 10 · Social Science · Economics: Money and CreditWhat is the main function of money in an economy?
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Total Attempts: 3
Accuracy Rate: 33.3%
Step-by-Step Solution
Money acts as a medium of exchange. It eliminates the need for the double coincidence of wants, which was the major drawback of the barter system, making transactions smooth and efficient.
Detailed Options Breakdown
Option : Medium of exchange (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 1: Accumulation of debt
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Economics: Money and Credit.
Option 2: Creation of barter
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Economics: Money and Credit.
Option 3: Destruction of wealth
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Economics: Money and Credit.
💡 Study Guide: This question tests core syllabus concepts from Economics: Money and Credit. For formulas, key summaries, and mock exam reference guides, read the full Economics: Money and Credit Revision Notes.