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MONEY AND INFLATION — Economics STD 12 Commerce — Question

Gujarat BoardEnglish MediumSTD 12 CommerceEconomicsMONEY AND INFLATION2 Marks
Question
Discuss the function of money as a medium of exchange with example.
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Answer

Money acts as an intermediary in trade, solving the problem of double coincidence of wants.
Example: A farmer can sell wheat for money and then use that money to buy clothes. He does not need to find a weaver who specifically wants wheat.

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