Question

how can money be used in exchange of goods or services

Answer 1

When money is used to intermediate the exchange of goods and services, it is performing a function as a medium of exchange. It thereby avoids the inefficiencies of a barter system, such as the "coincidence of wants" problem. Money's most important usage is as a method for comparing the values of dissimilar objects

Answer 2

early century people exchange their goods from another good suppose one man need rice and other one want shoes both of them exchange their goods this system is called batter system but later people suffer with lot of problems so they introduce currency which is paper and coin money reduce the difficulties .


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