If the role of money as described above were stated as a medium of exchange, would you agree? Explain.
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Yes..Money is a particular type of asset in an economy that people use to buy goods and services from other people or businesses. A medium of exchange is something that buyers will exchange with a seller when they want to purchase goods or services from the seller. While many things could be used as a medium of exchange in an economy, money is the most common and useful medium of exchange in our society.
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Yes I agree, The major purpose of money is medium of exchange and it is its advantage over the barter system of exchange because with money we can buy anything.
Explanation:
- For example: if we want to buy vegetable or gold or house or clothes, we can purchase anything in exchange of money but in barter system, the issue of medium of exchange existed.
- Suppose: I want to buy 10 kg of Wheat and the person having wheat requires 10 kg of Rice, then I would not exchange or have wheat from him or her unless and until I have that 10 kg of rice as exchange.
Learn more about Money as medium of exchange:
How is money used as a medium of exchange? Explain with examples.
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