Question

Why is money transaction system better than barter system? Explain with examples?Give 5 correct points.​

Answer 1

Answer:

Money transaction system eliminates the problem of double coincidence of wants. Faster mode of payment. Money can be used as medium of exchange. in barter system goods are exchanged against goods so every item does not have individual value and needs souble coincidence of wants.

Explanation:

1) Money is always gonna be useable.

2) Barter is very often not possible.

3) A disadvantage in the Barter system, relates to the lack of a common unit in which the value of goods and services should be measured.

4) Money can be used as medium exchange.

5) Money is a faster mode of payment.

Answer 2

Answer:

In the next main topic of this course, macroeconomics, money is one of the important concepts. This section talks about money from the perspective of microeconomics.

When people exchange goods and services without using money, this is called barter. "I'll cook dinner if you'll do the dishes" is an example of barter