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Who takes charge of the barter Store?
1) Monty
2) Barter Store Owner
3) Unknown

1 Answer

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Final answer:

In a barter system, items like shoes can lose value over time, contrasting with money which serves as a store of value, retaining stability despite inflation.

Step-by-step explanation:

The question relates to a barter system, which is where goods and services are exchanged without the use of money. In the example given, a shoemaker trades shoes for accounting services. The risk in such a system is that the items being bartered, such as shoes, may lose their value over time if they're not used soon, for instance, if they go out of style. On the other hand, holding money as a means of exchange mitigates this issue because money tends to hold its value, making it a better store of value than the goods themselves. Money retains enough stability in its value to function effectively day-to-day and year-to-year, despite fluctuations such as inflation.

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