how does money solve the problem ofbarter system ?

Money overcomes the shortcomings of barter system in the following manner:

1. Money solves the problem of double coincidence of wants. For example, if a person needs wheat in exchange of tea, then he/she must search for a person who is ready to trade wheat for tea. Money made the need for such searches redundant.

2. In barter system, it was very difficult to measure the value of one good in terms of another. For example, it is difficult to calculate the value of a cow in terms of wheat.

3. It was very difficult to store goods, especially perishable goods (fruits, meat, etc.) for the purpose of value storage. Money serves this purpose.

4. The contractual or future payments are much difficult to be made in barter system. For example, a worker working on contract basis could not be paid in terms of rice or chairs.

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....Money help to overcome the problem if barter system . In barter system money is not used .common things are used instead of monwy
....barter system cannot be used for all purposes.
....so money is used as the medium of exchange.
.....




I hope that this answer will help u...+++
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Money overcomes the problem of barter system by replacing the C-C economy with monetary economy (where 'C stands for commodity). (i) In the barter system, there was a problem of double coincidence of wants. ... Thus, money was invented to overcome the problem of double . coincidence of wants.
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Money overcomes the problem of barter system by replacing the C-C economy with monetary economy (where 'C stands for commodity). (i) In the barter system, there was a problem of double coincidence of wants. ... Thus, money was invented to overcome the problem of double . coincidence of wants.
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