How does money make it easier to exchange things?

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It is a medium of exchange.

Acts as a measure of value.

Is a store of value.

All of the above

answer is D.

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Detailed Solution

Money acts as a medium of exchange, a measure of value, and a store of value. The shortcomings of the barter system are remedied by cash. Consider a situation where a farmer who grows wheat requests potatoes from a farmer who also grows potatoes. As long as the farmer cultivating wheat wants potatoes, and the farmer growing potatoes wants cereal, there won't be a problem. The barter system allows for the trading of both items. The situation would become problematic if the farmer is growing wheat and needs potatoes, but the farmer is growing the potatoes and tomatoes required from a different farmer. Money is used where it may be paid directly to buy what is needed without waiting for a "double coincidence of wants" to occur.

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