The Importance of Money for Business Transactions

Money is a generally accepted means of exchange. In daily life, money is used to pay for goods and services, raw materials used in the production process, salaries to managers or wages to the production workers.

Money is essential for the smooth exchange of goods and services between sellers and buyers in markets, and helps specialization. It is necessary for needs and wants of individuals to be perfectly matched.

Without money goods would have to be exchanged using a barter system which means swapping goods directly…