BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Money was invented to facilitate the exchange of goods and services.
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Money was invented to support a barter economy.
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Money was invented to strengthen government power and control.
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Money was invented to lift people out of poverty.
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Detailed explanation-1: -Which statement best explains why money was invented? Money was invented to facilitate the exchange of goods and services.
Detailed explanation-2: -With money as a medium of exchange, one knows the purchase price of the item to be purchased and its price relative to other items. Money is a very convenient common denominator, a common measure of value that is also used as a medium of exchange. Money also encourages specialization.
Detailed explanation-3: -Money was invented as a universally accepted medium of exchange to facilitate easy exchange of goods and services.
Detailed explanation-4: -Money is a medium of exchange; it allows people and businesses to obtain what they need to live and thrive. Bartering was one way that people exchanged goods for other goods before money was created. Like gold and other precious metals, money has worth because for most people it represents something valuable.