Economy, asked by Garva66, 1 year ago

why money is called the medium of exchange?

Answers

Answered by Love04

Money is a particular type of asset in an economy that people use to buy goods and services from other people or businesses. ... While many things could be used as a medium of exchange in an economy, money is the most common and useful medium of exchange in our society......

Answered by suriyaraj

because you can get anything you want this can be explained clearly - in barter system you can get commodity only if a person is willing to sell his commodity but in some cases he doesn't have what you want. since money was introduced it is easy to buy anything by selling your commodity

ShAiLeNdRaKsP: From My Side to

ShAiLeNdRaKsP: Money eliminates coincidence of wants.
A person holding money can exchange it for any goods or services that the or she might need
Since money acts as an intermediate in the exchange process,it is called the medium of exchange

ShAiLeNdRaKsP: Just some more arguements

suriyaraj: yeah

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