How does money acts as a medium of exchange??
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●Money act as an intermediate in the process of exchange
●it reduces the double coincidence of wants ...
• for example ... a farmer has to buy shoes .. so first he will search for the buyer who not only wants to sell the shoes but also wants wheat in return ... this is the double coincidence of wants ....... but by the help of money the farmer will first sell his wheat and then can easily buy shoes by the help of money because no one can refuse the payment made in money ..
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desaikomal551:
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