The content is just an excerpt from the complete note for SS1 Third Term Economics Lesson Note – Money. Check below to download the complete DOCUMENT

WEEK 4

TOPIC: MONEY

Content

1. Definition and meaning of money
2. Historical development of money
3. Functions of money

Sub-Topic 2:  Definition and Meaning of Money

Money may be defined as anything that is generally acceptable as a medium of exchange for making payments, settlement of debts or other business obligations. Before the introduction of money, the type of exchange that took place was trade-by-barter.

TRADE BY BARTER

Definition:  Trade by barter may be defined as direct system and practice of exchanging goods for goods and services for services.

PROBLEMS/DIFFICULTIES/ DISADVANTAGES OF TRADE BY BARTER

• The difficulty of double coincidence of wants
• It wastes time and energy
• Difficulty in assessing the value the value of commodities
• Exchange become uninteresting and unexciting
• It does not encourage large quantity and variety purchases
• It does not encourage deferred payment
• It does not encourage installment payments
• It does not encourage division of labor
• There is no lending and borrowing
• It discourages large scale production
• Miscellaneous problem: These difficulties include: the non-durability, portability, divisibility, homogeneity; of the commodities that were used in exchange under trade by barter.

To gain full access to the note: DOWNLOAD FILE