Why is money transaction system better than batter system? Explain with example
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Answer:
money is good way of medium of exchange other than batter system bcz in batter system sometime one side is not satisfied with other good from one
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2
Answer:
Explanation:
Money transaction is always better than the barter system as it avoids the problem of double coincidence of wants...
Here is an example ..
Barter system: exchange of goods between a farmer and shoe maker
The shoe maker purchased a bag of rice from the farmer
The farmer needs his mode of payment , he has to take shoes in return even if he wants it or not...
Transaction with money: the farmer can sell rice to the shoe maker who will pay him in money .the farmer can take this money and buy what he needs accordingly
Hope this helps :D
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