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Question
Fill in the blank with appropriate alternatives given below
Medium of exchange is __________ function of money.
Options
primary
secondary
contingent
additional
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Solution
Medium of exchange is primary function of money.
Explanation:
The main function of money is to act as a medium of exchange. It facilitates exchange through a common medium i.e. facilitates exchange through currency and eliminates the need for double coincidence of wants for an exchange to take place. Therefore, it can be concluded that medium of exchange is the primary function of money.
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