Question

1. What do you know about the barter system? How do you think the use of money for
buying and selling goods came to be used?​

Answer 1

Answer:

In trade, barter is a system of exchange where participants in a transaction directly exchange goods or services for other goods or services without using a medium of exchange, such as money.

The origin of the money for selling and buying of goods came after it was found that barter system has lots of weakness ,one is not able to sell or buy goods of it's choice. The money in earlier period was in the form of cattle or grains latter it was replaced by bronze,silver etc type of money.

Answer 2

Explanation:

Barter system was not an effective method of exchanging of goods. This is because there a

was no direct involvement of money and there was double coincidence of wants which was not favourable for the people who were exchanging goods. On the other hand,money made the exchange of goods much more easier as it eliminated the double coincidence of wants.