Define barter system. How does money overcome shortcoming of it?
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Money overcomes the shortcomings of barter system in the following manner: Money solves the problem of double coincidence of wants. For example, if a person needs wheat in exchange of tea, then he/she must search for a person who isready to trade wheat for tea. Money made the need for such searches redundant.
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Money overcomes the shortcomings of barter system in the following manner: ... Money solves the problem of double coincidence of wants. For example, if a person needs wheat in exchange of tea, then he/she must search for a person who is ready to trade wheat for tea. Money made the need for such searches redundant.
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