Final answer:
Money is an intermediate trade good that enables easy exchange of goods and services without the inefficiencies of the barter system. It serves as a widely accepted intermediary that allows for specialization in the economy. So, the correct answer is option a.
Step-by-step explanation:
Money is an intermediate trade good that solves the problems of barter and allows people to specialize. As an intermediary between the buyer and seller, money facilitates exchanges without the need for a double coincidence of wants, which is essential in barter systems. In barter, trades are inefficient because they require that each party has what the other desires, such as an accountant needing to find someone who wants accounting services in exchange for shoes.
Money simplifies this process by providing a commonly accepted medium of exchange in the markets for goods, labor, and financial capital, allowing people to specialize in what they do best and trade their output for money, which they can then use to buy whatever they need.
So, the correct answer is option a.