How do money act as medium of exchange?

1.	How do money act as medium of exchange?
Answer» Money can be exchanged for any kind of service of one need or choice. Before money was introduced, people practised Barter system. They exchanged goods with each other .The problem with barter system was that both the parties had to agree to sell and buy each other product .This is know as double coincidence of wants . Answer.\xa0Money\xa0is used as a\xa0medium of exchange\xa0by: ... Goods and services\xa0can\xa0be bought and sold with the use of\xa0money. For example, someone who wants shoes\xa0can\xa0buy it with\xa0money\xa0and if someone wants\xa0to\xa0sell shoes, that also\xa0can\xa0be done by receiving\xa0money.

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