What is Barter system?Why metals were used as money?
Answers
Answer:
A barter system is an old method of exchange. Th is system has been used for centuries and long before money was invented. People exchanged services and goods for other services and goods in return.
Their malleability enables us to roll, cut, and hammer them into any required form, and to impress a permanent design by means of dies. With the exception of porcelain coins, which have been used in Siam, I am not aware that coins have ever been made of any substance except metal.
Answer:
In a barter economy, a buyer must find a seller in search of the exact goods that he/she has to offer. ... With the gold standard, the money supply would be tied to the amount of gold the country possessed, and a restricted money supply could impede economic growth.