Explain the

● Money is a medium of exchange of goods and services.

● It helps to facilitate transactions between the buyer and the seller.

● The buyer sells the goods in return for money from the buyer.

● The major issue in the barter system was the double coincidence of wants.

● It was absolutely necessary that both the parties involved must have the good that the other wants.

● Money has solved this concern as now goods can be exchanged for money.

OR

● Deferred payments mean the postponed payment which is to be made in future.

● This is in case of any borrowing or lending activity.

● Barter system suffered from the problem of lack of standard of deferred payment, as goods especially which were perishable in nature could not be held for long.

● So, the money helped to solve the lack of financial institutions issue in the barter system.