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Why was the need of money exchange felt? |
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Answer» With the passage of time, needs of people grew. New goods started to be produced. New techniques of production were developed. Population increased, production of goods also increased. Agricultural and traditional goods were produced in increased quantity. Production also increased due to the development of small scale and cottage industries. As a result it became impossible to obtain all the goods through barter exchange. Due to lack of medium measure standard and problem of store, money was introduced. Money was developed and payment for goods solved. Life and business continued very started to be done by money. As a result, smoothly. Somebody has rightly said : money exchange came into existence. “Money is a matter of functions four a When money came into existence, the medium, a measure, a standard and store.” problems of barter system in practical life |
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