Question

why money is used as a medium of exchange?

Answer 1

When money is used to intermediate the exchange of goods and services, it is performing a function as a medium of exchange. It thereby avoids the inefficiencies of a barter system, such as the "coincidence of wants" problem. Money's most important usage is as a method for comparing the values of dissimilar objects.
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Answer 2

Heya....

See here for your answer...

Money is what that money does..

It is used as the medium of exchange because...

"" It is issued by the authority RBI and signed by govt..

"" It sets an easy transactions...

"" It can be stored for future need also..

Thank you..