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Question
How does money overcome the shortcomings of a barter system?
Options
Money solves the problem of double coincidence of wants.
In barter system, it was very difficult to measure the value of one good in terms of another
It was very difficult to store goods, especially perishable goods
All of the above
MCQ
Solution
All of the above
Explanation:
The lack of double coincidence is solved by using money as a medium of exchange. The absence of a common measure is solved by using money as a measure of value. Money as a valued stone solves the problem of wealth stoning. Money as a deferred payment standard eliminates the difficulties of borrowing and lending.
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Evolution of Money
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