Question:medium

Justify the following statements with valid arguments: Money serves as the ‘medium of exchange’ for transactional purposes in an economy.

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Highlight the role of money in overcoming barter system limitations in such questions.
Updated On: Jan 13, 2026
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Solution and Explanation

Money serves as a universally recognized medium for the exchange of goods and services.
- It removes the necessity for a double coincidence of wants, a significant drawback of the barter system. 
- This improvement boosts trade efficiency and streamlines transactions.

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