Question

Why is money called median of exchange

Answer 1

Hi.

I think money is called median of exchange because we buy things by giving money ....

Answer 2

Money acts as a medium of exchange:-

1.It eliminates double co-incidence of bonds.

2.A person Holding the money can easily exchange it for any commodity or service.

3.It is authorized by the government of the country.

4.It is issued by RBI on behalf of central government.

5.The law legalised the use of a rupee as a medium of payment that cannot be refused.