Money has made transaction easy. Explain { 5 MARKS}
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1- Money acts as the medium of exchange. So all transactions are possible with the help of money.
2- All the goods and services are measurable in terms of money i.e. price.
3- Money can also be stored in the form of savings which can be used to do transactions during future needs.
4- Money has solved the problems of Barter System(commodity-commodity system) like the lack of double coincidence of wants where people disagree to exchange.
5- In the barter system, there is problem of storage of goods as some exchanged goods may get spoilt with time. Money solves this problem as it is not perishable.
So we can say that money has made our transactions easy.
2- All the goods and services are measurable in terms of money i.e. price.
3- Money can also be stored in the form of savings which can be used to do transactions during future needs.
4- Money has solved the problems of Barter System(commodity-commodity system) like the lack of double coincidence of wants where people disagree to exchange.
5- In the barter system, there is problem of storage of goods as some exchanged goods may get spoilt with time. Money solves this problem as it is not perishable.
So we can say that money has made our transactions easy.
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