How does money differ from barter?
A Money is mostly important as a way to get goods and services.
B Money is used to exchange goods and services.
C Money has value only because people agree that it has value.
D Money has been used for thousands of years.
The correct answer is C) Money has value only because people agree that it has value.
Money differs from barter in several ways. Barter is a direct exchange of goods and services. In a bartering system, individuals trade one good or service for another without the use of money. However, money is a universally accepted medium of exchange that represents a standard of value. It allows for the exchange of goods and services in a more efficient and convenient manner compared to barter.
Money has value because people agree to accept it as a medium of exchange and because of the trust and confidence placed in it by society. This concept is known as fiat money, where money's value is not derived from any intrinsic worth but is based on the collective belief in its usefulness and acceptance.