What makes money so important? Why do we use it?

Question

HINT: IT'S NOT JUST TO PAY FOR THINGS.

Answer 1

Money is important because it facilitates trade among people or group better than Barter can. The use of money has tremendous advantage over barter because it overcomes the problem of "Double coincidence of wants". imagine there is no money and barter is the only means of exchange, could you easily say "i would like to exchange 10 of my chicken for one of your pigs"? what if the owner of the pig does not need your chicken?
money overcomes this problem by acting as a medium of exchange thus facilitating trade. that is why it is important

Answer 2

In Economics the definition for Money is:it is a medium for exchange, store house of value and a means to maintain the purchasing power. I think that sums up the whole thing. To elaborate, suppose you need to buy something in the future with a cash flow you received at the present time. Then you would like the price then to remain same as what it is now. This can be achieved only if the countries economy is maintaining purchasing power. This is done through regulations and transparent and truthful policies of economy initiated by the goverment. Another one is suppose if you want to purchase x amounts of something. Somethin need to value x and it is currency that makes it happen. Of course you know medium of exchange when someone intend to sell or buy something has to be exchanged for the product sold and it is none other than currency who acts in between the buyer and the seller.

Answer 3

Money IS important, although it's just a piece of paper. Back then when there wasn't money, people used gold to buy things. Today in the U.S, money represents gold.That's why money is important.

Answer 4

Currently US money is imaginary. It's worth something only because people believe it is worth something.
At one time, US currency was actually worth something: Gold or Silver. There are still bills out there that say "Silver Certificate" or some such instead of "Federal Reserve Note."

Answer 5

We use it to pay for things "conveniently." If you want to buy a T-shirt, it is much easier and quicker to hand the store owner $10 or whatever than to say, "In exchange for this shirt, I will work for you for one hour."

Answer 6

1) Only inside your head.
2) Because the barter system is obsolete.