ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the commodity money is the best system
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wampum was agreed upon as the best system
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the product you have may not be the product the person needs who has the item you need
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everyone has the same products in different quantities
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Detailed explanation-1: -The barter system often creates an unbalanced system of trade, where parties are unable to find others willing to trade. The barter system also lacks a common unit of measurement for goods and services. Since most goods depreciate with time, they become less attractive for trade and storing value.
Detailed explanation-2: -Bartering is a cashless exchange system, where two parties trade goods or services directly, without money entering the conversation. It might bring to mind medieval marketplaces, but bartering still occurs a lot in the modern business world – typically in the shape of trading space, services or supplies.
Detailed explanation-3: -(i) Money as medium of exchange solves the barter’s problem of lack of double coincidence of wants as money has separated the acts of sale and purchase. You can sell goods for money to whosoever wants it and with this money you can buy goods from whosoever wants to sell them. Money is accepted as medium of exchange.
Detailed explanation-4: -Money evaluates every commodity and service with a convincing value. A person who doesn’t want anything in exchange will also be ready to work for someone for money. Money is a durable thing and lasts many years, even if kept unused.