Ask a Teacher



HOW DOES THE USE OF MONEY MAKE IT EASIER TO EXCHANGE THINGS?

As we know, in a barter system where goods are directly exchanged without theuse of money, double coincidence of wants is a necessary condition. By serving as amedium of exchange, money removes the need for double coincidence of wants andthe difficulties associated with barter system. In this way, the use of money makes iteasier to exchange things.


comments powered by Disqus