Question

How is modern forms of money accepted as a medium of exchange

Answer 1

A medium of exchange is an intermediary instrument used to facilitate the sale, purchase or trade of goods between parties. For an instrument to function as amedium of exchange, it must represent a standard of value accepted by all parties. In modern economies, the medium of exchange is currency.

Answer 2

Modern forms of money are accepted as a medium of exchange as we can give it in exchange for our daily needs. It helps us to buy everything we want and can exchange it for gaining money.