Economics B A-Level
Medium of exchange
What Medium of exchange means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of Medium of exchange
Check what you remember
Read the wording for your board, then hide it and explain Medium of exchange in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
Something the financial sector provides to overcome the inefficiencies of a barter system, which requires a double coincidence of wants.
Topics that use Medium of exchange
- The role of the financial sector (Pearson Edexcel A-Level)
Related terms
- Capital allocation
- Credit rating agencies
- Financial intermediation
- International trade
- Liquidity
- Payment systems
- Saving and borrowing
- Systemic stability
Using Medium of exchange in the exam
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