Medium Of Exchange
| A medium of exchange is an intermediary instrument used to aid in a sale or trade. It is used to facilitate transactions between parties by providing a unit of account and a means of payment. A medium of exchange is typically a currency or commodity that is accepted by both parties in a transaction. A medium of exchange is an important concept in economics and is used to explain how money works. Money is a type of medium of exchange that is used to facilitate trade and commerce. Money is used as a unit of account, which means it is a way to measure the value of goods and services. Money is also used as a means of payment, which means it is a way to exchange goods and services for other goods and services. Medium of exchange is a key concept in understanding how economies work. It is used to explain how money is created and how it circulates within an economy. Medium of exchange is also used to understand how prices are determined in an economy. |
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