What is Medium of Exchange?

A medium of exchange is an intermediary used in trade to avoid the inconveniences of a pure barter system.By contrast, in a barter system there must be a coincidence of wants before two people can trade the one must want exactly what the other has to offer, when and where it is offered, so that the exchange can occur. A medium of exchange permits the value of a good to be assessed and rendered in terms of the intermediary, most often, a form of money widely accepted to buy any other good