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Because money acts as an intermediate in the exchange process, it is called a:

ALegal tender
BMedium of exchange
CStore of value
DUnit of account
Answer & Solution
Correct answer: B. Medium of exchange
1. Everyone prefers payment in money. 2. Money is a medium of exchange. 3. It can be swapped for any commodity. _Source: syllabus Understanding Economic Development, Chapter 3, Money and Credit._
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