Evolution of Money Quiz

Money is any marketable good or token used by a society as a store of value, a medium of exchange, or a unit of account.

The barter system involves the trading or exchange of goods and services without using money. It was prevalent before the invention of money. With technological development, money evolved from barter to precious metal coins, paper money, electronics, plastic money like credit and debit cards, and eventually to virtual currency.

The difficulties of the barter system include the lack of double coincidence of wants, absence of a common unit of measure for values, and fluctuating values of different goods and services in the absence of a common unit of measure.

<p>Money evolved from the barter system to trade using initial coins made of precious metal, followed by low-valued metal coins, then paper money, and further advancements such as electronic and plastic money like credit and debit cards, leading to the eventual emergence of virtual currency.</p> Signup and view all the answers

<p>Money serves as a store of value, a medium of exchange, and a unit of account within a society's economy.</p> Signup and view all the answers