Question

Money facilitates trade because: the division of labor allows goods to be produced at a lower cost. it serves as a medium of exchange. it prevents people from taking advantage of each other. it eliminates the need for specialization. it is considered less valuable than the goods it is used to buy.

Answer 1

it serves as a medium of exchange

Step-by-step explanation:

Money facilitates trades because it serves as a medium of exchange.

Trade generally involves the exchange of goods/services for another goods/services or money. The exchange of goods/services for another goods/services is termed trade by barter.

Generally, all over the world, money is recognized as a medium of exchange. Each good/service can easily be evaluated in terms of money and the amount is exchanged during trading.