Ask Question
22 June, 19:42

Why is using money as a medium of exchange preferable to bartering?

+2
Answers (1)
  1. 22 June, 19:56
    0
    Money as a medium of exchange is more preferable because of its less cumbersome nature.

    Explanation:

    Money as a medium of exchange is more suitable because of its less cumbersome nature. Money was invented because of the inefficient nature of the barter system.

    Money is easily stored compared to a barter system.

    Money as a medium of exchange eliminates the barter system's problem of double coincidence of wants. Barter works when you trade things you own for things you want. If for example you want a bicycle and you own a goat, you have to look for someone who wants a goat and owns a bicycle willing to make an exchange, which can be quite difficult.

    Money is an acceptable medium of exchange to all parties which makes it more preferable to bartering.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Why is using money as a medium of exchange preferable to bartering? ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers