Medium Of Exchange

Medium Of Exchange
An intermediary instrument used to facilitate the sale, purchase or trade of goods between parties. In modern economies the medium of exchange is currency.

The use of a medium of exchange allows for greater efficiency in the economy and creates more trade in the economy. In a traditional barter system, trade between two parties could only occur if one had and wanted what the other party had and wanted, and vice versa. But the chances of this occurring at the same time are minimal. Let's say one party had a cow and the other had a lawn mower: with a medium of exchange such as gold coins, all the cow owner would have to do is find a buyer for the cow and she would receive gold coins. Then all she would have to do is find someone selling a lawn mower, which she could purchase with gold coins.


Investment dictionary. . 2012.

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  • Medium of exchange — Medium Me di*um, n.; pl. L. {Media}, {E}. {Mediums}. [L. medium the middle, fr. medius middle. See {Mid}, and cf. {Medius}.] 1. That which lies in the middle, or between other things; intervening body or quantity. Hence, specifically: (a) Middle… …   The Collaborative International Dictionary of English

  • medium of exchange — ˌmedium of exˈchange noun [singular] ECONOMICS something that can be used to buy goods or to measure someone s wealth. Money is the usual medium of exchange in most countries: • US currency is widely used as a medium of exchange here. * * *… …   Financial and business terms

  • medium of exchange — n. anything used as a measure of value in exchange for goods and services; currency, checks, etc …   English World dictionary

  • medium of exchange — index cash, currency, money Burton s Legal Thesaurus. William C. Burton. 2006 …   Law dictionary

  • Medium of exchange — Economics …   Wikipedia

  • medium of exchange — noun anything that is generally accepted as a standard of value and a measure of wealth in a particular country or region • Syn: ↑monetary system • Hypernyms: ↑standard, ↑criterion, ↑measure, ↑touchstone • Hyponyms: ↑ …   Useful english dictionary

  • medium of exchange — UK / US noun [countable] Word forms medium of exchange : singular medium of exchange plural mediums of exchange or media of exchange something that people agree has value and can be used as money, for example gold …   English dictionary

  • medium of exchange — medium of ex change noun count something that people agree has value and can be used as money, for example gold …   Usage of the words and phrases in modern English

  • medium of exchange — Synonyms and related words: and pence, cash, circulating medium, coinage, coined liberty, cold cash, currency, dollars, emergency money, filthy lucre, fractional currency, gold, hard cash, hard currency, legal tender, lucre, mammon, managed… …   Moby Thesaurus

  • medium of exchange — Date: 1714 something commonly accepted in exchange for goods and services and recognized as representing a standard of value …   New Collegiate Dictionary

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