Question

In a remote village, a person used fiveIn a remote village, a person used five beaver pelts to buy a bag of rice and two beaver pelts to buy a pair of shoes. For what purpose did this person use the money? A. increase trade B. store of value C. medium of exchange D. unit of account E. investment beaver pelts to buy a bag of rice and two beaver pelts to buy a pair of shoes. For what purpose did this person use the money? A. increase trade B. store of value C. medium of exchange D. unit of account E. investment

Answer 1

C

Step-by-step explanation:

Answer 2

Among the options given on the question the correct answer is option C.

Medium of exchange.

Explanation: On the stem used on the question, there is a description of a person who used beaver pelts to buy the necessary things for him. The person used five beaver pelts to buy a bag of rice and two beaver pelts to buy a pair of shoes.

The person used the beaver pelts as a medium of exchange. Because the the person wanted to buy things for him and he had the beaver pelts. On the other hand the person who had rice and shoe may be needed the beaver pelts. So after the negotiation the exchange rate was five beaver pelts for a bag of rice and two beaver pelts for a pair of shoes,

So the beaver pelts was used here as a medium of exchange.