Answer:
**Similarities between Money and Other Commodities Used in Barter:**
1. **Medium of Exchange:** Both money and other commodities in a barter system serve as a medium of exchange. They facilitate trade by providing a universally accepted means for transactions.
2. **Store of Value:** Money and certain commodities in a barter system can act as a store of value. They retain their worth over time, allowing individuals to save and accumulate wealth.
3. **Unit of Account:** Both money and certain commodities can be used as a unit of account to measure and compare the value of different goods and services in the market.
4. **Facilitate Economic Transactions:** Both money and commodities used in barter aim to facilitate economic transactions. They enable individuals to buy and sell goods and services, contributing to economic activity.
**Differences between Money and Other Commodities Used in Barter:**
1. **Divisibility:**
- **Money:** Money is highly divisible into smaller units, allowing for precise transactions.
- **Commodities:** Some commodities may lack divisibility, making it challenging to make precise exchanges.
2. **Durability and Portability:**
- **Money:** Generally, money is designed to be durable and easily portable, ensuring it remains a practical medium of exchange.
- **Commodities:** Certain commodities may lack durability and portability, making them less convenient for trade.
3. **Intrinsic Value:**
- **Money:** Modern fiat currencies often lack intrinsic value; their value is based on trust and government backing.
- **Commodities:** Many commodities have intrinsic value based on their utility or demand, beyond their use as a medium of exchange.
4. **Standardization:**
- **Money:** Currencies are standardized and regulated by governments, ensuring consistency and ease of use.
- **Commodities:** In barter systems, the exchange of commodities may lack standardization, leading to negotiation challenges.
Understanding these similarities and differences is essential in comprehending the role and function of money in modern economies compared to the barter systems of the past.
