Final answer:
Money serves as a medium of exchange, acting as an intermediary between buyers and sellers, which helps society avoid the limitations and complexity of a barter system.
Step-by-step explanation:
Money serves as a medium of exchange, acting as an intermediary between buyers and sellers. It allows people to easily exchange goods and services and avoids the inefficiency of bartering. In a barter system, people would need to find someone who wants what they have and has what they want, which can be difficult to arrange. Therefore, money's function as a medium of exchange helps society avoid the limitations and complexity of a barter system.
Money, as a medium of exchange, helps society avoid the inefficiencies of the barter system, specifically the need for a double coincidence of wants, by acting as a widely accepted intermediary in transactions.
Because money serves as a medium of exchange, it solves the problems created by the barter system and the need for a double coincidence of wants. This is where two traders have to want exactly what the other is offering at the same time, which is an inefficient way to conduct transactions in a modern economy. By acting as an intermediary accepted by society, money allows an accountant to exchange accounting services for money, and then use that money to buy shoes without needing to find someone who wants accounting services and has shoes to give in return.