0
The use of money meant that people could sell their surplus of goods in exchange for money and use the money earned to buy their needs. Money acted as a medium of exchange, a measure of value, a store of value, a standard for postponed payment anddeferring payment so that means that trade became simpler.
nowdays money is being used as a medium of exchange . At time of barter system goods were exchanged for goods. but it was very difficult at that time to make any payment because of double coincidence of wants. with the emergence of money as a medium of exchange , we can now make payments more easily than before .also it was very difficult at that time to store the goods for future use because it is not possible to store the perishable goods but now we can save money for future use.
W
ith a monetary economy pricing of goods is easier, apart from those days of barter where goods were valued in terms of other good or items.
saving is easier as people are not storing goods
exchange simplified as there is no need of double coincidence of wants
no problem of indivisibility of goods
money can easily act as a standard of deferred payments...
In a bartering system, the only way to obtain other goods is to trade your own goods for those you need. This becomes a problem if your good is not desirable to the person with whom you wish to barter or if your good is intangible, such as labor, leadership, or more service-oriented. Money is acceptable to all, so there is not an issue of each person wanting what good you have to offer, and those whose work involves the intangible can still participate.
Money can solve the problem of the barter system if money is exchanged for goods instead of goods for goods or a service for a service. Usually the parties worked out a barter system where both parties got something of equal value.
Money (whether currency, precious metals, or seashells) allowed for the uneven trade of goods. For example, if you have a cow and I have a chicken, how can we barter? With money, I can give you the chicken and 6 seashells. Then we are even.
Money also began to stabilize and set common prices for like goods so comparisons could be made.
Barter works if I want what you have, and you want what I have. Money Allows me to sell you that wheat you want, and to buy sausages from the guy over there that does not want wheat. It is portable, does not go bad.
Add your answer:
Earn +20 pts
What is the term for trade that is based on the exchange of goods rather than for money?
This is known as bartering.
What is the exchange of goods without using money?
This is called the barter system.
How do you use the word bartering in a sentence?
Bartering involves trading goods and services without the use of money. The politician had been bartering favors for information during most of his career.
Which describes the type of exchange that does not use money?
Bartering
What is barter money?
Bartering is the exchange of goods or services for other goods or services, without money. E.g. I will cut your hair if you give me two books. Since bartering is exclusive to the use of money, there is no such thing as "barter money".
What existed before money?
bartering
What is the term for trade that is based on the exchange of goods rather than for money?
This is known as bartering.
Money replaced what system of trade?
Bartering
What is the exchange of goods without using money?
This is called the barter system.
Did money originate from bartering?
Money was first introduced in bartering economies as a store of value, but its introduction quickly ended the practice of bartering since the benefit of having a fungible item used as a marker of value became obvious quickly.
How do you use the word bartering in a sentence?
Bartering involves trading goods and services without the use of money. The politician had been bartering favors for information during most of his career.
Which describes the type of exchange that does not use money?
Bartering
Why did people begin using coin money instead of bartering?
Because it is a more efficient means of exchange than bartering.
What is barter money?
Bartering is the exchange of goods or services for other goods or services, without money. E.g. I will cut your hair if you give me two books. Since bartering is exclusive to the use of money, there is no such thing as "barter money".
What is the problem and how does it get solved?
a problem is a conflict or a question and its solved by thinking how u would do fix the problem
What are the good and bad things about bartering?
If bartering is conducted in a friendly manner it can save you money, or get you a little extra in the way of goods or services.
In societies before money was invented what system did they use?
bartering
