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Almost every society now has a money economy based on coins and paper notes of one kind or another. Money is used for buying or selling goods, for measuring value and for storing wealth. However, this has not always been true. In primitive societies, a system of barter direct exchange of goods was used. Somebody could exchange a sheep, for example, for anything in the marketplace that they considered to be of equal value. Most governments now issue paper money in the form of notes. Paper money is easier to handle and much more convenient in the modern world. Cheques, bankers’ cards, and credit cards are being used increasingly, too.
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What is a money economy of every society based on?
It is based on a system of barter.
It is based on cheques, bankers’ cards, and credit cards.
It is based on paper money in the form of notes.
It is based on coins and paper notes of one kind or another.