How is money used as a medium of exchange? Explain with examples.

Open in App

Solution

Goods and services can be bought and sold with the use of money. For example, someone who wants shoes can buy it with money and if someone wants to sell shoes, that also can be done by receiving money. ... Money is used as a medium of exchange because it's the intermediary in the exchange process.

Suggest Corrections

Similar questions

Explain the advantages of 'store of value' function of money.

Explain the significance of 'medium of exchange' function of money.

Join BYJU'S Learning Program