Question

Suppose a merchant in a moneyless economy trade has goods for large amount of purple fabric. He intended to use the fabric to trade for other goods in another location. Well he traveled to the other market Place, 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. Unit of measure

B. Preservation of value

C. Government endorsement

D. Ease of exchange

Answer 1

B) 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:

Money is a medium of exchange that is generally acceptable for transactional purposes.

As seen in the scenario , money may not necessarily be cash as some other items can be used as a medium of exchange in a trade by barter agreement so far the items has the features of money and acceptable.

However , one thing that could be pointed out in the transaction in the scenario is a loss of value of the purple fabrics before the transaction could take place as a result of sudden arrival of a trade ship that caused a surplus in the fabrics , and at the end , it could not achieve as much as was expected.

Therefore the need for the preservation of value of money is necessary and needed