medium of exchange
- noun anything that is used to pay for goods. Nowadays, this usually takes the form of money (banknotes and coins), but in ancient societies, it included anything from cattle to shells.
- noun something, such as money, which is used to make purchases of goods or services easier. If there is no medium of exchange, then the parties have to use barter.
- A unit of perceived value, such as a currency, that is commonly accepted in trade for goods and services. Having a national currency operate as a medium of exchange in a country eliminates the inconveniences often associated with a barter system.