Economy, asked by bilalmir361, 4 months ago

Why is money called a medium of exchange?​

Answers

Answered by ItZzMissKhushi
5

Answer:

Money helps to facilitate trade because people in the economy generally recognize it as valuable. Money is called medium of exchange because money is a widely accepted token that can be used for exchange of any good or service. In old days, barter system was used as medium of exchange and later it was gold.

Explanation:

Answered by Anonymous
10

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Money helps to facilitate trade because people in the economy generally recognize it as valuable. Money is called medium of exchange because money is a widely accepted token that can be used for exchange of any good or service. In old days, barter system was used as medium of exchange and later it was gold.

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