Question

Question 9 of 10

3 Points
Suppose a merchant in a moneyless economy traded his goods for a large
amount of purple fabric. He intended to use the fabric to trade for other
goods in another location. While he traveled to the other marketplace,
however, a trade ship arrived with a large shipment of purple fabric. As a
result, the merchant was only able to trade his fabric for about half of what he
had expected it to be worth in return. This situation illustrates the need for
what aspect of the purpose of money?
A. Preservation of value
B. Unit of measure
C.Ease of exchange
D.Government endorsement
I NEED HELP PLEASE!!

Answer 1

A) Preservation of value!

Step-by-step explanation:

This means preserving a value, the cost of things at one point and another, you want to preserve that value in order to get the most out of your payment.

Answer 2

Preservation of value

Step-by-step explanation:

One of the advantages of money over trade by barter or any other moneyless transaction is the time value of money.

Time value of money can be explained as the ability of money to preserve its value and even increase in nearest future due to its potential earning capacity.

It can be inferred from the given scenario that the purples fabrics has lost a significant value due to the surplus of supply in the market place as it could no longer achieve the original worth.