Question

How does currency support the operation of economic activities

Answer 1

Answer:

It acts as a standard for deferred payments. However, the most important function of money which distinguishes it from other goods is that it serves as a medium of exchange. That is, money is a means of payment for goods and services. It is this use of money that distinguishes a monetary economy from a barter economy.

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Answer 2

Explanation:

In the economy today money performs several functions. Money serves as a standard of value in which other values are measured. ... However, the most important function of money which distinguishes it from other goods is that it serves as a medium of exchange. That is, money is a means of payment for goods and services.

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