Why is money called as medium of exchange?
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Answer:
because it helps us to buy things
Explanation:
Money is called as medium of exchange because when we use the money we have to give and take it back like for example- you are going to buy vegetables and fruits in the market and you buy bananas, mangoes, apples etc and they cost Rs 450 and you have Rs 500 then what will you do , obviously you will give that 500rs note to the seller and he will give you Rs50 back then isn't it. exchange of money. And you can see in many big companies also that one company is selling product and other is buying that product then will company able to buy the product with out money, no . Then here also exchange takes place.
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