Question

1)Exp the functions of money ?
2)Exp Difficulties in Barter ?​

Answer 1

Answer:

1. The main functions of money are distinguished as: a medium of exchange, a unit of account, a store of value and sometimes, a standard of deferred payment.

2. The five main difficulties found in barter system are as follows:

1. Double Coincidence of Wants

2. Lack of a Standard Unit of Account

3. Impossibility of Subdivision of Goods

4. Lack of Information

5. Production of Large and Very Costly Goods not Feasible.