Question

Barter system made certain things difficult, leading to the need for money. What features of money solved the difficulties of the barter system?

• A. Money can be used as a medium of exchange.
• B. Money can be used to make future payments.
• C. Money can be stored.
• D. Money can be easily carried from one place to another.

Answer 1

Answer: (A), (B), (C)

Money can be stored.

The absence of a medium of exchange in the barter system led to the birth of money. Money can be stored and used later. Money also acts as a standard for deferred payments and unit of account. Money can be a standard unit of measurement of the total value of goods.