Which statement best describes how money has changed and remained the same throughout history?

• A. Money has always existed in the form of coins and paper notes, with no significant changes over time.
• B. Money was originally used only for saving, and its role as a medium of exchange is a recent development.
• C. Money has changed by losing its function as a store of value, but it still serves as a unit of account.
• D. Money has evolved from barter systems to digital currencies, but it has always served as a medium of exchange.

Answer: (D)

Verified step by step guidance

1. Understand the primary functions of money in economics: medium of exchange, unit of account, and store of value.
2. Recognize that historically, money evolved from barter systems, where goods were exchanged directly, to physical forms like coins and paper notes.
3. Note that despite changes in form (from barter to coins, paper money, and now digital currencies), money has consistently served as a medium of exchange to facilitate transactions.
4. Acknowledge that money also functions as a unit of account, providing a common measure for valuing goods and services, which has remained stable over time.
5. Understand that while the form and technology of money have changed, its core role as a medium of exchange has persisted throughout history.