How is money used as medium of exchange.? Explain with examples
Answers
Answered by
21
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.
2. Unlike barter system, it eliminates the need for double coincidence of wants.
3. Money is used as a medium of exchange because it's the intermediary in the exchange process. Anything in the market can be bought and sold with it.
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.
2. Unlike barter system, it eliminates the need for double coincidence of wants.
3. Money is used as a medium of exchange because it's the intermediary in the exchange process. Anything in the market can be bought and sold with it.
Answered by
7
money is used as medium of exchange because it is used in the exchange of goods and services it is functioning as a medium of exchange it serves as a a common mode which people can buy what they want and sell what they have.
Similar questions