How the money acts as a medium of exchange?

1.	How the money acts as a medium of exchange?
Answer» Moneys act medium of exchange because 1. Lack of double conincidence of wants2.Lack of store of value3.money stands for differ payment 4.money haves common unit of value Money acts as a medium of exchange because any good can be bought or sold with the money as their value is already decided in the market in terms of money. I will provide a example. Imagine you go to a shop. You purchase something of 100Rs. You will give him a paper of rectangular shape which has the face of Gandhi. That paper is India\'s Paper Currency. This is how money acts as a medium of exchange.

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