ECONOMICS
MONEY
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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: -The money came into existence to overcome the drawbacks of the barter system. Earlier, people use to exchange goods and services as a form of commerce. This often led to many disadvantages, one of which was the double coincidence of wants. To solve this problem, a standard medium of exchange, money, was introduced.
Detailed explanation-3: -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.
Detailed explanation-4: -Cowrie shells, found abundantly in the Indian Ocean, were among the earliest forms of currency used in the world. In India, they were colloquially referred to as kaudi and were used in certain areas like Odisha even until the early 1800s.