As a medium of exchange, money makes exchanges easier by reducing

Question

Quizplus · Accepted Answer

Money serves as a medium of exchange by reducing transaction costs. In a barter economy, individuals would have to spend time and resources searching for someone who has what they want and is willing to exchange it for something they have. With money, individuals can exchange goods and services more efficiently without having to negotiate the terms of a barter exchange, thereby reducing the transaction costs.

As a Medium of Exchange, Money Makes Exchanges Easier by Reducing