Question

how is money used as medium of exchange explain with examples ​

Answer 1

Answer:Money is used as a medium of exchange by: 1. Goods and services can be bought and sold with the use of money. For example, someone who wants shoes can buy it with money and if someone wants to sell shoes, that also can be done by receiving money.

Answer 2

Money acts as an intermediate in the exchange process. Following example justify the use of money as a medium ofexchange

(i) In day-to-day transactions, goods are being bought and sold with the use of money.

(ii) The transactions are made in money as a person holding money can easily exchange it for any commodity or services

(iii) Use of money has made things easier to exchange as we can exchange it for any commodity we need.