how does the use of money make it easier to exchange things? give an example.
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By serving as a medium ofexchange, money removes the need for double coincidence of wants and the difficulties associated with barter system. In this way, the use of money makes it easier to exchange things. Goods are being bought and sold with the use of Money.
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Answer:
A person holding money can easily exchange it for any commodity or service that he or she might want.
Everyone prefers to receive payments in money and exchange the money for things they want.
For example: A shoemaker wants to sell shoes in the market and buy wheat. The shoemaker will first exchange shoes for money and then exchange the money for wheat. If the shoemaker had to directly exchange shoes for wheat without the use of money. He would have to look for a wheat growing farmer who not only wants to sell wheat but also wants to buy the shoe in exchange. Both the parties have to agree to sell and buy each others commodities. This process is very difficult, time consuming and unhealthy.
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