GK
INDIAN ECONOMY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Because money acts as an intermediate in the exchange process, it is also called
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value for money
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exchange value
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a medium of exchange
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foreign exchange
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Explanation:
Detailed explanation-1: -How money act as medium of exchange? Money is called a medium of exchange because it serves as a common mode through which people can buy what they want and sell what they have. The use of money did away with the barter system and thus ended the concept of double coincidence of wants.
Detailed explanation-2: -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-3: -Hence, money acts as the medium of exchange.
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