Question

what is a medium of exchange?

Answer 1

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

Answer 2

Hey friend here is your answer

Money is accepted as a medium of exchange as it is sanctioned by the central government and authorised by the reserve bank of India


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