“Money acts as an intermediate in the exchange process". Explain.
Money is the modern form of currency that is accepted as the medium of exchange and is a measure of value.
In a Barter System, where goods are directly exchanged without the use of money, double coincidence of wants is essential.
By serving as a medium of exchange, money removes the difficulties associated with the Barter System.
Money is authorised by the government of the country and nobody can legally refuse it as a medium of exchange for goods or services.
Thus, it can be concluded that money acts as an intermediate in the exchange process.