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How does money as a medium of exchange |
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Answer» Money acts as an intermediate in the exchange process. Following example justify the use of money as a medium ofexchange(i) In day-to-day transactions, goods are being bought and sold with the use of money.(ii) The transactions are made in money as a person holding money can easily exchange it for any commodity or services(iii) Use of money has made things easier to exchange as we can exchange it for any commodity we need. Money is issued by rbiIt reduces the double coincidence of wantsEfficient medium of exchange It fulfills the double coincidence of wants |
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