Transformation brought by introduction of money.
Introduction of money solved the problem of double coincidence of wants. A seller had to get a buyer for goods that he had and at the same time be in possession or have what the seller needed.
Different denominations of money has made it possible to strike a balance during transactions that cannot be subdivided.
The durability of money makes it possible to store the value of perishable goods such as farm and animals produce that would lose value with time.
Money market has enhanced continental trading.
Banks have also upgraded their systems to enable electronic and mobile money transfer across the continent.
Money has made trading very convenient since buyers are able to get what they want.
Invention of online money transfer does not guarantee safety when transacting business.
Introduction of money contributed to poverty reduction. This is through creation of job opportunities.
Uses of Money in Trade.
It is a medium of exchange during trade-money is a link between a buyer and a seller.
Instead of exchanging goods for goods, one can exchange goods for money and uses the money to buy the goods when need arises.
Standards of differed payment-this means that one can acquire an item that he needs and commits to pay for the item at a later date.
Unit of account in trading-some goods perish overtime. To avoid incurring losses, traders exchange them with money which is durable.
Store of value-money is the unit through which other values in trade are measured.
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