1.

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

Answer»
  • When money is used to intermediate the exchange of goods and services, it is performing a function as a medium of exchange.
  • A unit of account is a standard numerical unit of measurement of the market value of goods, services, and other transactions.
  • It serves as common mode through which a people can buy what they want and sell what they have.
  • Money makes it easier to carry out trading activities.


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