How does the use of money …

(i) Money means wealth around which the whole economic activities of every country move. Money acts as an intermediate in the exchange process and therefore it is called a medium of exchange. (ii) In our day to day transactions, goods are being bought and sold with the use of money. At times we do exchange services with money. (iii) Use of money has made things easier to exchange as we can exchange it for any commodity we need. (iv) The transactions are made in money because a person holding money can easily exchange it for any commodity or service that he or she wants. (v) Thus, the main function of money in an economic system is to facilitate the exchange of goods and services. Without exchange of money nobody can fulfil his all needs and requirements.