Question

Why is the use of money better than barter in trade?

Answer 1

With the advent of money, in the form of silver and copper coins, trade began to flourish. Use of money was an improvement over the existing barter system because money brought uniformity in trade and commerce, both through the kingdom and between different kingdoms. Moreover, the use of money hastened and simplified the trade process and removed discrepancies and discretion. The need for double coincidence of wants was also overcome. This meant trading could take place at any moment when one person has excess supply of a particular good and the other person is in need of the same. There was no more the requisite for both the parties to offer the goods demanded by each other.