Question

why people need money

Answer 1

money is considered to be a legal tender authenticated by the central bank of a country and having a feature of general acceptability.

before money, the concept of Barter system was in trend-

barter system implied that the commodity must be exchanged with the commodity, but this system of trade had many limitation therefore the concept and evolution of money took place.

requirement of money-

1. money is a medium of exchange we can buy most of the things money and can sell too for money.
2. money has a feature of store of value . we can store the value of money.
3. money has literally lower transacting cost compare to barter system.
4. money can be used for deferred payment.
5. money is the valuation of the worthiness of any commodity which was not possible in barter system.
6. money is the basis for foreign exchange which eventually help in foreign trades and dealings.

the above concerns are which makes the utilization of money effective and necessary. in fact no one can assume one's life without the functioning of money.