Question

Why is modern currency system better than barter exchange system

Answer 1

The main advantage of money over barter is that money is always going to be usable. Barter is very often not possible. This is because of the need for what is called a “coincidence of wants” (sometimes called a “double coincidence of wants”).

Thus, the main advantage of money is that it can be exchanged for anything. Anyone will take money because it is always valuable to them. By contrast, the things that I have to barter might not be valuable to various people and so it will be much harder to find chances to trade.