● 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.
● 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.
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