Why money transaction system is better than barter system?

Answer 1

Suppose I'm a fisherman, and I need a suit. Under the barter system, I have to find a tailor who needs fish. Or, I could find a tailor who needs some bread, then go find a baker who needs some fish.

As you can see, the barter system can be quite inefficient and time-consuming. When you replace barter with currency, you have a system that is truly efficient. Now, I can sell my fish to anyone who wants fish, and they can pay me in currency. I can take my currency and get whatever I need. Not only is it more fluid, I also have more time to fish.

Answer 2

In the early 1990's, persons traded goods and services because they did not have any knowledge of money. However as time elapsed persons became more sensible and grew to desire greater needs and wants. So as a result, persons began to specialize in various occupations and no longer bartered but insteadd used the money system. So to answer this question, the money system is more efficient because in order to barter each person must have something the other wants whereas with money you go to the producer and purchase your good or service directly without having to negotiate.

Answer 3

Because you can get an unfair share if you barter.