How can money be easily exchange …

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How can money be easily exchange itself for goods or services? Give example to explain

Posted by Sameer Joshi 6 years, 8 months ago

CBSE > Class 10 > Social Science

2 answers

Yogita Ingle 6 years, 8 months ago

Money acts easier to exchange for goods and services:

A person holding money can easily exchange it for any commodity or service that he or she might want.
Everyone prefers to receive payments in money and exchange the money for things they want.
For example: A shoemaker wants to sell shoes in the market and buy wheat. The shoemaker will first exchange shoes for money and then exchange the money for wheat. If the shoemaker had to directly exchange shoes for wheat without the use of money. He would have to look for a wheat growing farmer who not only wants to sell wheat but also wants to buy the shoe in exchange. Both the parties have to agree to sell and buy each others commodities. This process is very difficult, time consuming and unhealthy.

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Prerna Baid 6 years, 8 months ago

In the early times, people used to exchange one commodity for another, depending on their requirement under the barter system. However, exchanging goods in the barter system required double coincidence of wants.

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