What does medium of exchange mean?
Definitions for medium of exchange
medi·um of ex·change
This dictionary definitions page includes all the possible meanings, example usage and translations of the word medium of exchange.
Princeton's WordNet
medium of exchange, monetary systemnoun
anything that is generally accepted as a standard of value and a measure of wealth in a particular country or region
Wiktionary
medium of exchangenoun
An intermediary used in trade to avoid the inconveniences of a pure barter system, such as money.
Wikipedia
Medium of exchange
In economics, a medium of exchange is any item that is widely acceptable in exchange for goods and services. In modern economies, the most commonly used medium of exchange is currency. The origin of "mediums of exchange" in human societies is assumed to have arisen in antiquity as awareness grew of the limitations of barter. The form of the "medium of exchange" follows that of a token, which has been further refined as money. A "medium of exchange" is considered one of the functions of money. The exchange acts as an intermediary instrument as the use can be to acquire any good or service and avoids the limitations of barter; where what one wants has to be matched with what the other has to offer.Most forms of money are categorised as mediums of exchange, including commodity money, representative money, cryptocurrency, and most commonly fiat money. Representative and fiat money most widely exist in digital form as well as physical tokens, for example coins and notes.
ChatGPT
medium of exchange
A medium of exchange is any item or system, widely accepted within a community or by society, that is used for transactions between parties for trade or commerce. It facilitates trade by promoting a more efficient exchange of goods or services compared to bartering. An example of a medium of exchange can be physical or fiat money, digital currency, or any other commodity that is agreed upon for trade. It also serves as a measure of value in the market.
Wikidata
Medium of exchange
A medium of exchange is an intermediary used in trade to avoid the inconveniences of a pure barter system. By contrast, as William Stanley Jevons argued, in a barter system there must be a coincidence of wants before two people can trade – one must want exactly what the other has to offer, when and where it is offered, so that the exchange can occur. A medium of exchange permits the value of goods to be assessed and rendered in terms of the intermediary, most often, a form of money widely accepted to buy any other good.
Editors Contribution
medium of exchange
A form of legal currency.
The medium of exchange is the currency of the country.
Submitted by MaryC on January 21, 2021
Matched Categories
Numerology
Chaldean Numerology
The numerical value of medium of exchange in Chaldean Numerology is: 8
Pythagorean Numerology
The numerical value of medium of exchange in Pythagorean Numerology is: 9
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"medium of exchange." Definitions.net. STANDS4 LLC, 2024. Web. 26 Apr. 2024. <https://www.definitions.net/definition/medium+of+exchange>.
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