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IGCSE Economics
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Individual as Consumer, Producer
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Frequently Asked Questions - money
FAQs -
money
Explanation:
Involves comparing the importance of function of money as a medium of exchange as compared to barter (the direct exchange of goods and services for other goods and services without using money )
The problem with barter was that it relied on a double coincidence of wants, this wasn’t always possible and the use of money as a means of exchange avoids this.
Money is also significantly better as a measure of value, a store of value and a standard for deferred payments.
