Asked by
Tamia Darden
on Oct 09, 2024Verified
Money functions as a medium of exchange by eliminating the need for a coincidence of wants.
Medium of Exchange
Any item sellers generally accept and buyers generally use to pay for a good or service; money; a convenient means of exchanging goods and services without engaging in barter.
Coincidence of Wants
A situation in barter economies where two parties each possess goods or services that the other desires, enabling a direct exchange without the need for a common medium of trade.
- Explain the function of money as a medium of exchange.
Verified Answer
KM
Learning Objectives
- Explain the function of money as a medium of exchange.