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How does money act as a …

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How does money act as a medium of exchange?
  • 3 answers

Gaurav Seth 6 years, 4 months ago

Money acts as a medium of exchange because any good can be bought or sold with the money as their value is already decided in the market in terms of money. A medium of exchange is an intermediary instrument used to facilitate the sale, purchase or trade of goods between parties. For an instrument to function as a medium of exchange, it must represent a standard of value accepted by all parties. In modern economies, the medium of exchange is currency.

Aman Kumar 6 years, 4 months ago

Beacuse it plays important role for our livelihood and it is medium of exachange goods and services
It is authorised by government.
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