Ease of Specialization:
Barter was characterised by the phenomena of self sufficiency which was inefficient. The invention of money led to specialisation. Specialisation makes people and [Mtions to do what they can do relatively well and effectively. Specialisation not only helps in reducing cost of production but also results in higher production. The increase in the production, then, can be traded to buy other goods.
10. Foreign Investment:
Money has made possible the huge foreign investment in today's world. Under barter system, investment was fairly impossible. But with the invention of money people M different new modes of making investment.
11. Measurement of Efficiency:
Under barter, there was no standard of measuring efficiency and productivity. However, this problem was solved by money. Now we can measure output, costs and efficiency in definite monetary units and can take long term decisions on the basis of such measurements,
Summing up:
It can be easily judged that there were many difficulties in the barter system of le. The invention of money removed almost all of these difficulties and showed the rid a path of rapid economic activity and liberalisation
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