How Does Money Serve As A Medium Of Exchange? First, money serves as a medium of exchange, which means that money acts as an intermediary between the buyer and the seller. … This money is then used to buy shoes. To serve as a medium of exchange, money must be very widely accepted as a
What Is Representative Commodity And Fiat Money? Fiat money is both physical money and legal tender and is backed by a nation’s government. Representative money is backed by a physical commodity such as precious metals or instruments like checks and credit cards. Before 1971, the world’s currencies were representative and backed by gold. What is
What Is Something Of Value That Can Be Used To Obtain Goods And Services? A B Medium of exchange Something of value that can be used to obtain goods and services; most common form is money Natural resources Items that are found in nature and used to produce goods and services Producers The people who