Why are transactions made in money? -SST 10th

1 Answer

Answer :

Money is accepted as a medium of exchange because the currency is authorised by the government of India. In money transactions, money can be paid for any goods or services one desires. For example : the producer of shoes may want wheat in exchange for his shoes. But he may find it difficult to find a person who is also willing to exchange his wheat for shoes.So simultaneous fulfilment of mutual wants is the first and foremost condition to buy and sell the commodity. In money transaction one can buy a commodity whenever one wants it. One does not have to wait for another person to agree to an exchange of goods.

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