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Question
Introduction of ___________ removed difficulties of barter system.
Introduction of ___________ removed difficulties of barter system.
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Solution
The correct option is C money
Barter system of exchange had
many difficulties like lack of double coincidence of wants, lack of a common unit
of value, difficulty of future payments or contractual payments and difficulty
of storage of value and transfer of value.
Introduction of money which refers to a
common medium of exchange that is issued under the law of government and acts
as a legal tender for the whole country removed the difficulties of barter system through its various following functions:
1. Common medium of exchange
2. Store of value
3. Common measure unit
4. Serve as the standard of deferred payments
Barter system of exchange had many difficulties like lack of double coincidence of wants, lack of a common unit of value, difficulty of future payments or contractual payments and difficulty of storage of value and transfer of value.
Introduction of money which refers to a common medium of exchange that is issued under the law of government and acts as a legal tender for the whole country removed the difficulties of barter system through its various following functions:
1. Common medium of exchange
2. Store of value
3. Common measure unit
4. Serve as the standard of deferred payments
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