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What is money? and its advatages |
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Answer» Money is a medium of exchange; it allows people to obtain what they need to live. Bartering was ONE way that people exchanged goods for other goods before money was created. Like gold and other precious metals, money has worth because for most people it represents SOMETHING valuableMoney SERVES as a unit of value or unit of account and acts as a yardstick to measures exchange value of all commodities. The value of each good or service is expressed as price (i.e. money units) which guides both consumer and producer to make a transaction. THUS money makes keeping of BUSINESS account possible. |
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