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Explain with you r example with your own function of money |
| Answer» Money\'s most important function is as a medium of exchange to facilitate transactions.In order to be a medium of exchange, money must hold its value over time; that is, it must be a store of value.Money also functions as a unit of account, providing a\xa0common measure of the value\xa0of goods and services being exchanged.\xa0Without money, all transactions would have to be conducted by\xa0barter, which involves direct exchange of one good or service for another.\xa0In other words, in a barter system, exchange can take place\xa0only\xa0if there is a\xa0double coincidence of wants.Money effectively eliminates the double coincidence of wants problem by serving as a medium of exchange that is accepted in all transactions. | |