> What is the demand for a medium of exchange? People accept a medium of exchange in exchange for their goods and services because they trust that they can lat

> What is the demand for a medium of exchange? People accept a medium of exchange in exchange for their goods and services because they trust that they can later exchange it for something they want. The "demand" for a medium of exchange lies in direct bartering being inconvenient, because whoever wants something you have, might not have something you want, right then and there. In this case, instead of a trade not happening, you can just accept a medium of exchange, and use it later to get what you want. > Why not just use monopoly money, or acorns, or lumps of clay? If people knew they could exchange lumps of clay for goods and services, they would accept them as payment for goods and services. > What drives the citizens of a country to use the currency issued or authorized by that country's government? That very same government?