Question

Money as a medium of exchange. Explain.​

Answer 1

Explanation:

Money serves as a medium of exchange, which means that money acts as an intermediary between the buyer and the seller. Instead of exchanging accounting services for shoes, the accountant now exchanges accounting services for money.

Answer 2

Answer:

Money helps to facilitate trade. Money is a medium exchange because buyers and sellers agree to its common value. Money can lose its value during periods of hyperinflation, when too much money is dumped into an economy.

Explanation:

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