CBSE Class 10 Answered

Under the barter system, goods were directlly exchanged without the use of money. In this case double coincidence of wants was an essential feature where both parties had to agree to buy and sell each others commodities for exchange to take place.
When money was introduced it could be used as a medium of exchange and thus eliminated the difficulties associated with double coincidence of wants.
As money is authorised by the government and acceptable by all,a person can freely buy goods that he/she wishes to.
Thus we can state that money acts as an intermediate in the exchange process.