Money is able to function more as a medium of exchange when

A.

There is a fall in production

B.

More prople engage in subsistence production

C.

Individuals and nations are self-sufficient

D.

There is specialization of labour

Correct answer is D

Money is able to function more as a medium of exchange when there is specialization of labour. Specialization of labour, on the other hand, increases the need for money. This is because specialization means that people produce different goods and services, which they then trade with each other. Money is needed to facilitate these trades.