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Explain the significance of “medium of exchange” function of money. |
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Answer» Money serves as a medium of exchange or payments. Money helps in buying and selling of goods and services, as it is commonly accepted as a medium of exchange. Money has solved the problem of lack of double co-incidence of wants, found in the barter system. Money reduces the time and energy spent in the barter system. Money has made the exchange of goods easy. |
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