Question

1. Which main point about money is the author trying to make in this text?
a) Money unfairly flows to the richest people in the world.
b) Money allows people who don't know or trust each other to trade.
c) Money is the root of all evil.
d) Money can purchase many things but it cannot buy happiness.

Answer 1

Answer:

b) Money enables people to trade even when they do not know each other or trust each other, according to the author.

Explanation:

• The author of the passage asserts that in the past when communities were smaller and people engaged in commerce among a smaller number of people, credit was the primary method of conducting business.
• However, as markets expanded, sellers and buyers didn't really know one another well enough to trust each other and maintain a credit relationship. This made it difficult for both parties to maintain a credit relationship.
• Here, money comes into play. It makes it possible for people who do not trust each other to engage in business together by removing the requirement that they keep credit and allowing immediate payment for goods and services purchased.

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