ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Money acts as a legal tender for any type of exchange and transactions. Buyers can purchase goods or a service from the seller in exchange for money. Presence of money in the economic market makes the transactions taking place easier as in the other scenario; one will have to use barter for the transactions.

Detailed explanation-2: -Money facilitates transactions of goods and services as a medium of exchange. Producers sell their goods to wholesalers in exchange of money. Wholesalers, in turn, sell their goods to the retailers and the retailers sell these goods to the consumers in exchange for money.

Detailed explanation-3: -Bartering is based on a simple concept: Two individuals negotiate to determine the relative value of their goods and services and offer them to one another in an even exchange.

Detailed explanation-4: -To summarize, money has taken many forms through the ages, but money consistently has three functions: store of value, unit of account, and medium of exchange.

Detailed explanation-5: -Money is a liquid asset used to facilitate transactions of value. It is used as a medium of exchange between individuals and entities. It’s also a store of value and a unit of account that can measure the value of other goods.