Economics
How does the use of money make it easier to exchange things?
Money & Credit
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Answer
Money serves as a universally accepted medium of exchange, making transactions more efficient. It provides a standard unit for measuring the value of goods and services and is easy to carry unlike materials used in barter system. In a barter system where goods are directly exchanged without the use of money, double coincidence of wants was an essential feature. Money eliminates the need for double coincidence of wants. Also, it retains its value over time. Unlike perishable goods, money can be saved for future use and can be used to accumulate wealth.
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