medium of exchange (redirected from Bad money drives out good)
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Medium of Exchange
Anything used as money
. A medium of exchange is most commonly a currency
, but it may be a commodity
agreed-upon in a certain area as having a value
. Examples include gold, silver, or even seashells.
medium of exchange see MONEY.
medium of exchange an attribute of MONEY, enabling people to price goods and services and exchange them, using money as a common denominator rather than exchanging one good directly for another (as in BARTER).