How did money solved the bartering problem?

Answer 1

The use of money meant that people could sell their surplus of goods in exchange for money and use the money earned to buy their needs. Money acted as a medium of exchange, a measure of value, a store of value, a standard for postponed payment anddeferring payment so that means that trade became simpler.

Answer 2

nowdays money is being used as a medium of exchange . At time of barter system goods were exchanged for goods. but it was very difficult at that time to make any payment because of double coincidence of wants. with the emergence of money as a medium of exchange , we can now make payments more easily than before .also it was very difficult at that time to store the goods for future use because it is not possible to store the perishable goods but now we can save money for future use.

W

ith a monetary economy pricing of goods is easier, apart from those days of barter where goods were valued in terms of other good or items.

saving is easier as people are not storing goods

exchange simplified as there is no need of double coincidence of wants

no problem of indivisibility of goods

money can easily act as a standard of deferred payments...

Answer 3

In a bartering system, the only way to obtain other goods is to trade your own goods for those you need. This becomes a problem if your good is not desirable to the person with whom you wish to barter or if your good is intangible, such as labor, leadership, or more service-oriented. Money is acceptable to all, so there is not an issue of each person wanting what good you have to offer, and those whose work involves the intangible can still participate.

Answer 4

Money can solve the problem of the barter system if money is exchanged for goods instead of goods for goods or a service for a service. Usually the parties worked out a barter system where both parties got something of equal value.

Answer 5

Money (whether currency, precious metals, or seashells) allowed for the uneven trade of goods. For example, if you have a cow and I have a chicken, how can we barter? With money, I can give you the chicken and 6 seashells. Then we are even.

Money also began to stabilize and set common prices for like goods so comparisons could be made.

Answer 6

Barter works if I want what you have, and you want what I have. Money Allows me to sell you that wheat you want, and to buy sausages from the guy over there that does not want wheat. It is portable, does not go bad.

Answer 7

Actuallly money has increased problem.Well,barter trade was not accurate & people could be cheated easily.