How does the use of money make it easier to exchange things?

Money is any item which is generally accepted as payment against any goods or services and repayment of debts. Money is widely accepted as a medium of exchange. Central Bank is the institution that authorizes money as a medium of exchange. Without money, all transactions would have to be conducted by barter, which involves direct exchange of one good or service for another. The difficulty with a barter system is that in order to obtain a particular good or service, one has to possess a good or service of equal value which the other party also desires. In other words, the exchange can take place only if there is a double coincidence of wants between the two parties. The chance of getting a perfect double coincidence of wants is negligible and makes the exchange difficult. Money eliminates this problem by serving as a medium of exchange that is accepted in all transactions, by all parties, irrespective of whether they desire each other’s goods and services.