Money and financial system Barter system : It is a system where goods are exchange with the goods. It suffers from many difficulty Double coincidence of want : Barter system can only work when both the persons are ready to exchange each other’s good the situation in which both the persons are ready to sell and buy each other’ commodity is as double coincidence of wants For example : when the farmer wants cloth against his surplus wheat but the weaver does want to have wheat against his surplus cloth or the farmer doesn’t want to have clothe in exchange of wheat therefore the barter exchange is not possible . Money : Money is anything which is accepted as a medium of exchange ,measure of value, store of value and can be used for standard of deferred payment. Modern form of money : Currency : currency includes coin and paper notes Coins are made up of some metal, hence they are called metallic coins ,modern currency notes are not made of valuable metals like gold and...