how does money act as a medium of exchange
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money can be exchanged for any kind of service of one need or choice. Before money was introduced, people practised Barter system. They exchanged goods with each other .
The problem with barter system was that both the parties had to agree to sell and buy each other product .This is know as double coincidence of wants .
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Answer:
money Acts as an intermediate in the exchange process it is called a medium of exchange.
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