ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Barter system is no longer used as a medium of exchange as there is no . No worries! We’ve got your back. Try BYJU’S free classes today!

Detailed explanation-2: -Money helps to facilitate trade because people in the economy generally recognize it as valuable. Money is called medium of exchange because money is a widely accepted token that can be used for exchange of any good or service.

Detailed explanation-3: -Money is a system of value that facilitates the exchange of goods in an economy. Using money allows buyers and sellers to pay less in transaction costs, compared to barter trading. The first types of money were commodities. Their physical properties made them desirable as a medium of exchange.

Detailed explanation-4: -Money is anything that serves as a medium of exchange. Other functions of money are to serve as a unit of account and as a store of value. Money may or may not have intrinsic value.

Detailed explanation-5: -To put it a different way, money is something that holds its value over time, can be easily translated into prices, and is widely accepted. Many different things have been used as money over the years-among them, cowry shells, barley, peppercorns, gold, and silver.