Describe how money contributes to economic activity and allows for a more complex society than barter does.

1. What is the primary social function of the financial system? a. To direct financial capital to its highest and best use b. To maximize shareholder returns c. To maintain a steady stream of financial innovations d. To find unexploited profit opportunities 2. What is the primary challenge of a barter economy? Successful transactions require transporting and distributing goods from one location to another b. Successful transactions require consumers to gather information on a variety of goods and services and pick a combination that maximizes consumer utility c. Successful transactions require producers to manage a complex set of inputs d. Successful transactions require the realization of a double coincidence of wants 3. Technically, money is a. The base good for which all other goods and services are traded b. The commodity of greatest value in a society c. Always a fiat currency d. The object of production

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You're using prices to determine which apple is best (obviously Honeycrisp). What is the use of money in this context? -store of value -unit of account -discount sharing -medium of exchange

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Q3

Answer in detail 1) Given the following three examples of means of payment, among them, which is/are money? and provide your reason.  Cash Credit card Gift card 2. Why can a certain amount of money not buy happiness?

Money functions as a medium of exchange because it is readily exchangeable for other goods. A) True B) False

Complete each of the following sentences: a product that serves both as money and as a commodity is

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