Question

currency _________.

a. uses barter for a means of exchange
b. is a unit of exchange used for the purchase of goods and services
c. is based on the value of gold in the united states
d. is inconsistent in an economy
e. means the price for a good or service cannot change

Explanation:

• Option A: Barter is direct exchange of goods/services, not currency. Eliminate A.
• Option B: Currency is a medium of exchange for buying goods/services. This matches the definition.
• Option C: Modern US currency is not based on gold (fiat money). Eliminate C.
• Option D: Currency is consistent in its role as a medium of exchange in an economy. Eliminate D.
• Option E: Currency doesn't fix prices; prices are determined by market forces. Eliminate E.

Answer:

B. is a unit of exchange used for the purchase of goods and services