Question

why is money called a medium of exchange

Answer 1

Money actually serves several different key functions in our economy. It is a medium of exchange, a unit of account, and a store of value. ... Money helps to facilitate trade because people in the economy generally recognize it as valuable.

Answer 2

Medium of Exchange: When money is used to intermediate the exchange of goods and services, it is performing a function as a medium of exchange. Unit of Account: It is a standard numerical unit of measurement of market value of goods, services, and other transactions.