Money and credit
1. Why are transactions made in money? Explain with an example
2. What is barter system what are its did advantages?
Answers
Answer:
1)Answer: Explanation: Everyone prefers to receive payments in money and then exchange the money for things they want. ... The transactions are made in money because a person holding money can easily exchange it for any commodity or service that he or she wants.
Explanation:
2)Drawbacks of Barter Systems: 1. Lack of double coincidence of wants. 2. Lack of a common measure of value.
Explanation:
1.The transactions are made in money because a person having money can easily exchange it for any commodity/thing or service that he or she wants.
2.The exchange of needy things between two people is called battar system...
It's disadvantage is given in the book on the 1 to 2 page no. in beginning of the chapter...so u van take it from there
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