What are the advantages of monetary system over barter system?
u must consider all the functions of money which are: Medium of Exchange- money facilitates exchange because for barther to take place we need double coincidence of wants where for eg if a man want to exchange apples for milk, he must find someone else who want to sell milk for apples…so barther is unlikely to function properly …then we have the fact that money can be saved whereas gds cannot be stored for long as some are highly perishable. Also with money, assets can be given a monetary value as well as cost. Moreover consider the standard of deffered payment function…where gds can be bought on hire purchase… plus…see also renting etc…these would be impossible in barther system.
