Imagine you want to trade your toy car for a cookie. But the person who has the cookie wants your candy instead, and they have no idea what your toy car is worth. That’s why we use money, it makes trading easier because everyone agrees on how much things are worth.
What Is Money?
Examples
- A farmer trades his wheat for a loaf of bread with a baker.
- You give your friend $10 for a candy bar.
- Your mom gives you $20 so you can buy a video game.
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See also
- Why Do We Have Different Kinds of Taxes?
- Why Do Prices Change So Much?
- Why Do We Use Money Instead of Bartering?
- Why Do Prices Go Up So Much When There's a Shortage?
- Why Do We Have Different Kinds of Coins?
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Categories: Economics · money,barter system,economics,trade,currency