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Difference between money and barter system |
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Answer» Barter system:* In a barter sysem, people give goods in exchange of goods.* In a barter system, the parties have to agree to exchange each other goods.*In a barter system, exchange cannot take place if the parties do not agree to buy each others goods.*Therefore, double coincidence of wants is a must in a barter system.Money system:* In an economy that uses money, things are exchanged , using money as a medium.* A man who is in possession of money can easily exchange it for anything that he wants.*People prefer to receive payments in money and then exchange it for aything that they may want.* The use of money as a medium of exchange the need for double coincidence of wants. I dont know |
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