Money by acting as a medium of exchange provides the crucial ____step.

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Detailed Solution

Money by acting as a medium of exchange provides the crucial intermediate step.
A system known as a “barter system” is one in which items are traded for one another without the use of money. The fact that someone wants to sell something and someone else wants to buy it at the same time is a crucial aspect of this situation. To put it another way, both the buyer and the seller must agree to buy and sell each other's goods. As a result, items are traded using a barter system rather than money. Money serves as the fundamental intermediary step in an economy because it eliminates the requirement for the crucial aspect of double coincidence of wants. Any vendor no longer needs to search for a customer who won't just purchase his product and exchange it for what he wants.

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