Medium of exchange
Medium of exchange is whatever is widely accepted as a method of payment.
Definition
According to Principles of Economics by Timothy Taylor (3rd edition),
- Medium of exchange. Whatever is widely accepted as a method of payment.
According to Macroeconomics by Mankiw (7th edition),
- Medium of exchange. The item widely accepted in transactions for goods and services; one of the functions of money. (Cf. store of value, unit of account.)