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Why is money called a medium of exchange |
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Answer» Money is called a medium of exchange because it acts as an intermediary in the exchange process of different goods and services. Money as a medium plays an important and crucial intermediate step which in turn eliminates the need for double coincidence of want. For example, with the introduction of money, it is no longer necessary for a rice producer to search for a person with the required excess and need for exchange. Thus, money is a legal finder which means legally none can refuse in exchange.Posted By : Mohmad Saleem KumharR/O : Lajurah, District : PulwamaJammu and Kashmir India. \tMoney is called the medium of exchange as it is something which is used for transactions.\tIt is money which is used by people to get the commodity of his choice.\tWhere earlier, different products were used for exchange, now money is used.\tMoney includes coins, notes and even e-transactions are valid now.\xa0 1.Because it is issued by the govt. of the country.2.It is easy to hold.3.The value of each good or service is measured in monetary unit or money. |
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