Why is the use of money better than barter in trade?
Answer:
Answer to be written in the exam:
The use of money is better than barter because
-
it makes transactions
easier and more efficien
t. In a barter system, people have to exchange goods or services directly, which can be difficult if they do not have what the other person wants.
-
Money,
on the other hand, is a
universally accepted medium of exchange
that can be used to buy any goods or services.
-
This makes transactions faster and more convenient.
- Money also allows people to save and accumulate wealth , which is not possible in a barter system
