2006-06-29 23:32:54 · 5 answers · asked by Anonymous in Social Science ➔ Economics
u must consider all the functions of money which are:
Medium of Exchange- money facilitates exchange because for barther to take place we need double coincidence of wants where for eg if a man want to exchange apples for milk, he must find someone else who want to sell milk for apples...so barther is unlikely to function properly
...then we have the fact that money can be saved whereas gds cannot be stored for long as some are highly perishable.
Also with money, assets can be given a monetary value as well as cost.
Moreover consider the standard of deffered payment function...where gds can be bought on hire purchase...
plus...see also renting etc...these would be impossible in barther system.
Barther system is favorable only in the case of what happened in Germany after the world wars where inflation rate was very very high...people were exchanging cigarettes for other gds
2006-06-29 23:52:43 · answer #1 · answered by rapstar 3 · 0⤊ 0⤋
Barter System is a way of exchanging things for things. Nowadays we exchange things for money but in olden days, when money was not invented, people exchanged things that they do not need to others and got what they need. Suppose one family had a dog and the other had a cow. If each would want the other, they would exchange it among them but the problem was, there was no measuring or weighing so, even a person in need of a loaf of bread could get it for an exchange of a calf. After some time, people felt that this was not a proper system as it did not equal to the goods given and received so, they found out that there needs to be a weighing scale for this exchange where small silver coins were developed and later due to modern developements, money was made the official exchange system for goods. BYE
2016-03-26 22:48:40 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Advantages Of Monetary Economy
2017-01-11 15:23:32 · answer #3 · answered by scholze 4 · 0⤊ 0⤋
answer already given by A-level student. i give example. a singer went to an island where barter system existed. the people gave her fruits and animals in reward for her songs. while returning back she gave the fruits to the animal in oreder to keep them alive. thats what barter system is.
2006-06-30 00:12:35 · answer #4 · answered by Yasir Saeed 2 · 0⤊ 0⤋
I suppose you could say the Monetary system allows for a 'fair' system of trade and also it makes comparissons of prices easier..i dont know if you realyl can compare them, their 2 entirely different systems..
2006-06-29 23:37:20 · answer #5 · answered by thomas p 5 · 0⤊ 0⤋