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3.1 Money

Question 2 • (OC27) Economics-2102310-Sem-Meadows

Money replaces the need for bartering because it creates an easy way to analyze, exchange, and store value. As a medium of exchange, money allows us to easily trade value for a product we want to purchase. Because money is a unit of account, we can assign a dollar value to products. Finally, because money allows us to store value, we can accumulate value over time. In each case, we have more options than bartering would provide.

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