Meaning of the word "medium of exchange" in English

What does "medium of exchange" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

medium of exchange

US /ˈmiːdiəm əv ɪksˈtʃeɪndʒ/
UK /ˈmiːdiəm əv ɪksˈtʃeɪndʒ/

Phrase

an intermediary used in trade to avoid the inconveniences of a pure barter system

Example:
Money serves as a medium of exchange in modern economies.
Without a common medium of exchange, trade would be much more difficult.