question_answer

How can money easily exchange it for goods or services? Give example to explain.

Answer:

Money can be easily exchanged for the goods and services as money is acceptable as the medium of exchange by the Indian government and money also reduces double coincidence of wants. If somebody, has surplus vegetables and he needs wheat in lieu of that, then he could find a person who has surplus wheat and needs vegetables. Earlier, the major drawback of the barter system was double coincidence of wants. However, now people can purchase any good in exchange of money.