Business 1
255 words paragraph on Money Article Shared By ADVERTISEMENTS: Money is the most important and essential tool of modern economic life. One cannot imagine modern economic life without money. Barter economies or self-sufficient economies are the thing of past and historical significance. Money is the foundation stone of modern economic life. Money is the pivot around which all economic activities revolve. Money is important in all economies whether it is a socialist economy or a capitalist economy; or a backward economy or a rich economy. In the initial stages of exchange economy, commodities were exchanged with commodities. Such transactions were known as barter transactions. In this stage commodity was the form of money. However, under barter transactions there were difficulties relating to common measure of value, store of value, divisibility of goods etc. Therefore, in place of commodities gold and silver were used as money. But even this system could not continue for l...