How does the use of money make it easier to exchange things? Give an example.

It is easy to exchange things with the use of money because money acts as a ‘standard mode of payment’ involving transactions. For example – Suppose a shoe manufacturer wishes to sell his shoes and buy wheat. He would sell his shoes in the market for money and then use the money to buy wheat. However, if he had to sell his shoes in exchange for wheat without the use of money, he would have to first find a person willing to buy his shoes and at the same time also ready to give wheat.

The use of money therefore is convenient.

NOTE – Money solves the problem of double coincidence of wants (as explained in the above example), wherein the buyer and the seller need to settle according to specific conditions suitable to both of them at the same time, leading to a lot of inflexibility in the transaction.