Question

In your opinion, between barter system and monetary system, which one is superior and why?

Answer 1

• Barter system:- A system in which goods and services are directly exchanged for other goods without the use of money is called barter system. In other words it is the direct exchange of goods for goods. Barter economy is such an economy in which there is no use of a generally acceptable medium of exchange. Before the emergence of money this system was in practice.
• Monetary system:- It is the set of mechanisms by which a government provides money in a country's economy. it usually consists of a mint, central bank, and commercial banks.