In the example above, money can be represented as a medium of exchange.
Money as Medium of Exchange.
Money as a medium of exchange refers to its function as a widely accepted instrument or token that facilitates the buying and selling of goods and services. It serves as a common medium through which individuals can exchange their goods or services for other goods or services.
Money serves as a common unit of value that allows individuals to trade goods and services. In this example, the $100 pair of shoes, two $50 haircuts, and four $25 baseball game tickets all have different values, but they can be compared and exchanged because they are all denominated in the same currency. Money facilitates transactions by providing a universally accepted means of payment, making it easier for people to buy and sell goods and services.