How does money act as a medium of exchange ?
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Answered by
9
Money is a form medium that is used to exchange diffrent things.Without mney
things would be really difficult.this because if there would not be money , then it
there should be DOULBLE COINCEDENCE OF WANT.But what is double coincedence of wants?.
we can explain it with example.a rice seller wants to sell his wheat in exchange of shoes.but shoes seller wants pots for his shoes. potter wants wheat for his pots.SO IN THIS SITUATION the wheat seller wants to check a shoes seller who wants to buy his wheat @ same time sell his shoes
that is why money is medium of exchange..
things would be really difficult.this because if there would not be money , then it
there should be DOULBLE COINCEDENCE OF WANT.But what is double coincedence of wants?.
we can explain it with example.a rice seller wants to sell his wheat in exchange of shoes.but shoes seller wants pots for his shoes. potter wants wheat for his pots.SO IN THIS SITUATION the wheat seller wants to check a shoes seller who wants to buy his wheat @ same time sell his shoes
that is why money is medium of exchange..
Answered by
10
It acts as an intermediate in the exchange process and transactions. We can buy things if we have money in our pockets.
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