Comprehension Passage

Directions: Read the following paragraph and answer the questions below.

"Money and banking play a critical role in every modern economy. Money, acting as a medium of exchange, unit of account, and a store of value, facilitates transactions and trade. Depending on the country, these currencies can take the form of dollars, euros, yen, etc. Banks, on the other hand, function as key financial intermediaries, accepting deposits from individuals and businesses, and channeling these funds in the form of loans to those in need of capital. Types of banks include commercial banks, investment banks, and central banks, each with their unique functions. Central banks, in particular, use tools like interest rates to regulate a country's money supply, a process known as monetary policy."

What roles does money play in a modern economy?

1
A form of entertainment
2
A medium of exchange, unit of account, and a store of value
3
A source of political power
4
A measure of personal success

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