Question 1 Report
Which one of the following functions of money would be most useful to a fishers' cooperative that used to barter its catch for fuel, ice and repair services? The cooperative now prices all goods in the local currency.
(a) Using one currency to compare the prices of fuel and ice shows money acting as a unit of account, or measure of value [1]. It gives goods and services a common unit in which prices can be stated and compared.
(b) Money removes the need for a double coincidence of wants, making exchange quicker and easier [1]. Under barter, the cooperative would need to find someone who both wanted fish and was willing to supply the exact fuel, ice or repair service wanted. Money allows the fish to be sold to one person and the money spent elsewhere.
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