The problem of similar wants made exchange difficult, so a new medium of exchange was developed known as____________ *
capital
rent
money
cost
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The problem of similar wants made exchange difficult, so a new medium of exchange was developed known as money.
One of the difficulties in the barter system was the problem of similar wants. This drawback made the barter system fail.
The journey of money right from the barter system can be explained as-
- Before money long existed, there were other forms of money used by pre-historic humans. These forms included animal money, commodity money, and metallic money.
- The drawbacks of these forms of exchange were large and hence, paper money was introduced.
Money out of all the options is the only medium of exchange existing hence, money is the answer.
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