Question

Reason for money as a medium of exchange.

Answer 1

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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Answer 2

Money is the intermediary mode of exchange it is used because to:

Prevent the double coincidence of wants

It is also a replacement for the barter system which was previously followed before the discovery of money.

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