Which of the following is NOT considered a medium of exchange?

The correct answer is that credit cards are not considered a medium of exchange in the traditional sense. A medium of exchange typically refers to an instrument or item that is widely accepted in transactions for goods and services.

Money, cash, and coins are all direct forms of currency that can be used to purchase items immediately without any intermediary. They serve the primary function of facilitating transactions by providing a common value that both buyers and sellers can agree upon.

Credit cards, on the other hand, represent a method of accessing credit or borrowing funds to make a purchase rather than providing a direct exchange of value. When using a credit card, the transaction essentially involves borrowing money from the credit card issuer to pay the merchant, which will later need to be repaid. Therefore, while credit cards enable the purchasing process, they do not function as a medium of exchange in the same way that money or cash does.