Why did money replace the barter system?

Answer 1

This is one of those cases where the definition of a particular word, in this case "barter", is crucial.

If barter means the direct exchange of goods and services without a medium of exchange, the more common use, then by and large, the invention of money supplemented the barter system by providing a nonperishable medium of exchange. Money provided an effective way to avoid the problem of one party being unable to provide a good or service that the other party wanted.

If barter simply refers to exchanging, while many people think the bartering system ended when money was invented, people can still barter and pay with money. Money gives a nonperishable item to be bartered with.

Answer 2

Because people had no more things of value to barter with, and so to increase value, money was introduced, first in gold coins or nuggets or gold bars/buillions. Then in silver coins, nuggets, or silver bars. After a while, gold and silver no longer has as much value as does cash. So cash was introduced independent of gold or silver weights.

That's not the case in Ancient China. Cash was introduced in China due to people not wanting to carry up to 100 or more strings of coins, where each string can be an innumerable amount of coins, each coin was weighted differently depending on where in China the coins were produced, so if you went to a neighboring city, it might be a different weight, and so the amount in cash might be more or less depending on the standard of measurement used per city, county, etc... within each province in China. Ancient China has between 28-35 provinces!

Answer 3

Because it was so much more practical. Barter is OK if you can do a direct trade, You have something the other guy wants and he has something that you want. But if you need to do a three-way swap or more, barter becomes real slow and impractical. With money, you always have something that the other guy can use.

Answer 4

With the help of money one can buy a commodity of his choice according to his desires. He need not wait for other person to exchange his goods with someone one else. Thus money makes the economic activities quite independent from each other.

Answer 5

The invention of money supplemented the barter system by providing a nonperishable medium of exchange.

Answer 6

It

Answer 7

I dont