What are the benefits of using a monetary system versus a barter system?

Answer 1

Can you give me change for half a goat?

Answer 2

Under a barter system it's impossible to organise, you can't have a corporation and distribute a cow to each of your employees. This way everyone can buy anything that is within their financial capacity, I mean, say you walk up to a person in a barter system and you'd rather like to purchase that lovely pocketwatch he's got on the table, but you on the other hand, while not an impoverished man, still do not have anything that would interest that gentleman specifically. You have plenty of bread and food and other such things, but none of these are quite as valuable as such a lovely pocketwatch as that, and you don't have anything of equal value that happens to interest that salesman, even if some of the things are in fact more valuable.

With money on the other hand, everyone can trade money, because money serves a purpose for every person. So I can go up to that salesman, and he can tell me exactly what the pocketwatch is worth to him and I can give him a piece of paper exactly by that worth, and he can use that money to purchase things that he likes and he's interested in, instead of having to just have the luck of someone else bringing him a good or service that he finds useful.

Answer 3

In a monetary system all parties know the value of the currency. In a barter system both parties must arrive at an agreed-upon value for the goods/services exchanged.

Answer 4

Barter systems only work between companies but not for staffs. The reason is simple, the cost of the bartered product is definitely cheaper in cost.




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Answer 5

A bartering gadget could be complicated to video reveal. case in point, in case you probably did some artwork on a guy's domicile, like painted the full outdoors of the domicile. you probably did a good activity considering you're an A-a million painter. In substitute, he places in a clean floor for you. nicely the floor that he for you is powerful. The time he put in is comparable to the time you put in. cloth costs have been comparable. yet your high quality of artwork is lots greater effective than his. Then what?

Answer 6

You got to have an intermediary. Otherwise you would constantly be trying to find the individuals which have the goods you need but that also need the good which you have. The monetary system bypasses this.

Answer 7

Have you ever tried to pay for your eBay purchase with a goat? they don't lend themselves to electronic funds transfer!

Also, it would be kinda hard to get a goat out of an ATM...