ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Money enables anyone who possesses it to participate as an equal market player. When consumers use money to purchase an item or service, they are effectively making a bid in response to an asking price.

Detailed explanation-2: -On exchange is a term used to describe a trade that is taking place directly on the order book of an exchange. It differs from trading over-the-counter (OTC), which are contracts exchanged between two parties, away from a centralised exchange. One way to trade on exchange is through direct market access (DMA).

Detailed explanation-3: -Money is called medium of exchange because money is a widely accepted token that can be used for exchange of any good or service. In old days, barter system was used as medium of exchange and later it was gold.

Detailed explanation-4: -Generally, there are two types of trade-domestic and international. Domestic trades occur between parties in the same countries. International trade occurs between two or more countries. A country that places goods and services on the international market is exporting those goods and services.

Detailed explanation-5: -Example Sentences These coupons can be exchanged for food. I’d like to exchange this sweater for a smaller one.