Which of the following is considered as the PRINCIPAL role of money?

Facilitation of exchanges

The correct answer is Option 1: Facilitation of exchanges

The principal role of money is to facilitate exchanges by acting as a medium of exchange. This function simplifies transactions by eliminating the need for a double coincidence of wants, which is a requirement in barter systems. While money also serves other important roles such as being a unit of account and a store of value, its primary and most fundamental role is to facilitate exchanges in the economy.