Question

Why is money transaction system better than barter system give answers in 5 points

Answer 1

1.Money transaction system eliminates the problem of double coincidence of wants.

2.Faster mode of payment.

3.Money can be used as medium of exchange.

4.in barter system goods are exchanged against goods so every item does not have individual value and needs souble coincidence of wants.

hope it helps :)

Answer 2

Money transaction systemeliminates the problem of double coincidence of wants. Faster mode of payment. Money can be used as medium of exchange. inbarter system goods are exchanged against goods so every item does not have individual value and needs souble coincidence of wants.
A barter system is an old method of exchange. Th is system has been used for centuries and long before moneywas invented. People exchanged services and goods for other services and goods in return. ... The value ofbartering items can be negotiated with the other party.

The main advantage of money overbarter 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”). ... Barter is very often not possible.