An item that is widely accepted as payment for goods and services is a

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A medium of exchange is an item that is widely accepted as payment for goods and services, and is a key characteristic of modern economies. It allows for transactions to occur more efficiently than with barter exchange, where goods and services are directly traded without the use of a medium of exchange. Exchange rate and trade exchange are related to international trade and currency exchange, but do not necessarily pertain to a universally accepted medium of exchange.

An Item That Is Widely Accepted as Payment for Goods