Why is money accepted as a medium of exchange?

see full answer

Talk to JEE/NEET 2025 Toppers - Learn What Actually Works!

Real Strategies. Real People. Real Success Stories - Just 1 call away

An Intiative by Sri Chaitanya

Goods and services can be bought and sold easily using money

It is unreliable

It is unstable

None of the above

answer is A.

(Unlock A.I Detailed Solution for FREE)

Ready to Test Your Skills?

Check your Performance Today with our Free Mock Test used by Toppers!

Take Free Test

Detailed Solution

Money is accepted as a medium of exchange as goods and services can be bought and sold easily using money. Money also helps in solving the problem of double coincidence of wants. Thus, the introduction of money has eliminated the shortcomings of the barter system. Money also creates a perfect store of value and stabilises the economy by preventing conflicts. Money can be paid in advance with a promise of goods for later. Thus, money makes economic activities independent of each other.

Result Producing online coaching for JEE/NEET of south India

Largest All India Test Series for JEE/NEET

Best Books for IIT JEE

Best Books for NEET

How to Join IIT after 10th