state the problems of barter system of exchange. How does money solve them?
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Double coincidence of wants is essential in an barter system however using money as medium of exchange , eliminates this by providing the crucial intermediate step
For ex in barter system a shoemaker has to look fo a farmer who will buy his shoes as well as give whatever the shoemaker wants but with selling shoes he could earn money and use it for buying whatever he wants
For ex in barter system a shoemaker has to look fo a farmer who will buy his shoes as well as give whatever the shoemaker wants but with selling shoes he could earn money and use it for buying whatever he wants
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