A Level Economics (9708)•9708/11/O/N/20

Explanation
Acceptability enables widespread use in transactions
Steps:
- Recall the functions of money: medium of exchange, unit of account, store of value.
- Identify medium of exchange as facilitating trade by replacing barter.
- Evaluate characteristics: acceptability means people trust and use it; others support but don't enable core exchange.
- Conclude acceptability is primary for transactions to occur smoothly.
Why A is correct:
- By definition, a medium of exchange requires general acceptability, as money must be willingly traded for goods and services without hesitation.
Why the others are wrong:
- B: Divisibility aids precise pricing as a unit of account, not essential for basic exchange.
- C: Durability supports long-term storage of value, less critical for immediate trades.
- D: Portability eases carrying for transactions, but without acceptance, it's useless.
Final answer: A
Topic: Money and banking
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