n The barter system and the evolutionof early money.

Barter SystemBarter System is the medium of exchange between twopeople for the exchange of goods and services according to their needs. Theycomplete their needs by exchanging goods and services. This system has beenused for centuries before money was invented.Barter: exchange goods or services for other goods orservices without using money (Oxford English Dictionary) Commodities which are used as amoney.Alcohol, Almonds, Amber, Barley, Butter, Cloths,Drums, Rice, Salt, Tea, Slaves, Teeth and many more.        “The historyof bartering dates all the way back to 6000 BC.

Introduced by Mesopotamiatribes, bartering was adopted by Phoenicians. Phoenicians bartered goods tothose located in various other cities across oceans. Babylonian’s alsodeveloped an improved bartering system. Goods were exchanged for food, tea,weapons, and spices. At times, human skulls were used as well. Salt was anotherpopular item exchanged.

Salt was so valuable that Roman soldiers’ salaries werepaid with it. In the middle Ages, Europeans traveled around the globe to bartercrafts and furs in exchange for silks and perfumes. Colonial Americansexchanged musket balls, deer skins, and wheat. When money was invented,bartering did not end, it become more organized.” Due to lack of money, bartering became popular in the1930s during the Great Depression. It was used to obtain food and various otherservices. It was done through groups or between people who acted similar tobanks.

If any items were sold, the owner would receive credit and the buyer’saccount would be debited.            Some negative points of barter system1.      Divisibility2.      Durability3.

      Portability   1.      Sometime the value ofgoods are different from each other.2.       Lack of Double Coincidence of Wants 3.       Lack of a Common Measure of Value 4.       Indivisibility of Certain Goods 5.       Difficulty in Storing Value 6.       Difficulty in Making Deferred Payments 7.

       Lack of Specialization. Steps of evaluation of money1.      World without currencymoney2.      Asian  Cutlery3.

      Coins4.      Currency5.      Banks6.      Money Travel7.      Mobile Payments Cattle CurrencyThe word cattle and capital come from the same wordLatin that is capitalis.1.      Standard size & weightmade tea “bricks” an ideal commodity money in parts of Asia2.      In Mongolia, 12–15 brickswould buy a sheep3.

      In Tibet, 120–150 boughtone camel4.      In some places tea bricksstill circulate as a medium of exchangePeople used cattle as a source of exchange. Everythingis paid by the exchange of cattle like fines for murder and for everything.Food and tobaccoFood and tobacco is also used as barter system but itsnot a good medium of exchange due to spoil, taste and many other reasons likesometimes the taste preference is difference and sometime eaten by pets.

ClothesIt’s a good medium of exchange because everyone needclothes to wear but people face difficulties in size and color. Every personhave their own body structure and size and their own color preference.Coin MoneyIn 600 B.C., Lydia’s King Alyattes minted the firstofficial currency.

The earliest coin money was made from electrum that’s themixture of gold and silver. The picture was stamped on it.Advantages of metal money1.

      Good source of storage2.      Countable3.      Long lasting4.

      Good source of exchangedue to their size.5.      Everyone can use6.      Safe and conveniencePaper money”The first paper currency issued by Europeangovernments was actually issued by colonial governments in North America.Because shipments between Europe and the colonies took so long, the colonistsoften ran out of cash as operations expanded.

Instead of going back to a bartersystem, the colonial governments used IOUs that traded as a currency. The firstinstance was in Canada, then a French colony. In 1685, soldiers were issuedplaying cards denominated and signed by the governor to use as cash instead ofcoins from France (Beattie,2015)”.Money TravelMoney Travel increased the level of internationaltrade.

In money travel, many people of different countries purchase thedifferent currencies from different countries. Mobile PaymentsIn 21th century, currency rise their level like now wecan use mobile payments, mobile transfers, apple pay and many other transferswith our phone. This plays a very big role in our developing business. Chequebooks, paper money, coin money etc.                                References1.                 Major Disadvantages of the Barter System (2015, Feb 5).

Barter System History: The Past and Present. Retrieved fromhttps://www.mint.com/barter-system-history-the-past-and-present 2.                  Beattie.

A (2015). BarterTo Banknotes. Retrieved from http://www.microeconomicsnotes.com/barter-system/6-major-disadvantages-of-the-barter-system/1198            2.                  Beattie.

A (2015). BarterTo Banknotes. Retrieved from http://www.microeconomicsnotes.com/barter-system/6-major-disadvantages-of-the-barter-system/11981.

                 Major Disadvantages of the Barter System (2015, Feb 5).Barter System History: The Past and Present. Retrieved fromhttps://www.mint.com/barter-system-history-the-past-and-present                            References     In 21th century, currency rise their level like now wecan use mobile payments, mobile transfers, apple pay and many other transferswith our phone.

This plays a very big role in our developing business. Chequebooks, paper money, coin money etc.Mobile PaymentsMoney Travel increased the level of internationaltrade. In money travel, many people of different countries purchase thedifferent currencies from different countries. Money Travel”The first paper currency issued by Europeangovernments was actually issued by colonial governments in North America.Because shipments between Europe and the colonies took so long, the colonistsoften ran out of cash as operations expanded. Instead of going back to a bartersystem, the colonial governments used IOUs that traded as a currency. The firstinstance was in Canada, then a French colony.

In 1685, soldiers were issuedplaying cards denominated and signed by the governor to use as cash instead ofcoins from France (Beattie,2015)”.Paper money6.      Safe and convenience5.

      Everyone can use4.      Good source of exchangedue to their size.3.      Long lasting2.      Countable1.      Good source of storageAdvantages of metal moneyIn 600 B.C.

, Lydia’s King Alyattes minted the firstofficial currency. The earliest coin money was made from electrum that’s themixture of gold and silver. The picture was stamped on it.

Coin MoneyIt’s a good medium of exchange because everyone needclothes to wear but people face difficulties in size and color. Every personhave their own body structure and size and their own color preference.ClothesFood and tobacco is also used as barter system but itsnot a good medium of exchange due to spoil, taste and many other reasons likesometimes the taste preference is difference and sometime eaten by pets.Food and tobaccoPeople used cattle as a source of exchange. Everythingis paid by the exchange of cattle like fines for murder and for everything.4.

      In some places tea bricksstill circulate as a medium of exchange3.      In Tibet, 120–150 boughtone camel2.      In Mongolia, 12–15 brickswould buy a sheep1.

      Standard size & weightmade tea “bricks” an ideal commodity money in parts of AsiaThe word cattle and capital come from the same wordLatin that is capitalis.Cattle Currency7.      Mobile Payments 6.      Money Travel5.

      Banks4.      Currency3.      Coins2.      Asian  Cutlery1.      World without currencymoneySteps of evaluation of money 7.       Lack of Specialization.6.

       Difficulty in Making Deferred Payments 5.       Difficulty in Storing Value 4.       Indivisibility of Certain Goods 3.       Lack of a Common Measure of Value 2.       Lack of Double Coincidence of Wants 1.      Sometime the value ofgoods are different from each other.  3.      Portability 2.

      Durability1.      DivisibilitySome negative points of barter systemDue to lack of money, bartering became popular in the1930s during the Great Depression. It was used to obtain food and various otherservices. It was done through groups or between people who acted similar tobanks. If any items were sold, the owner would receive credit and the buyer’saccount would be debited.                “The historyof bartering dates all the way back to 6000 BC. Introduced by Mesopotamiatribes, bartering was adopted by Phoenicians.

Phoenicians bartered goods tothose located in various other cities across oceans. Babylonian’s alsodeveloped an improved bartering system. Goods were exchanged for food, tea,weapons, and spices. At times, human skulls were used as well. Salt was anotherpopular item exchanged.

Salt was so valuable that Roman soldiers’ salaries werepaid with it. In the middle Ages, Europeans traveled around the globe to bartercrafts and furs in exchange for silks and perfumes. Colonial Americansexchanged musket balls, deer skins, and wheat. When money was invented,bartering did not end, it become more organized.”Alcohol, Almonds, Amber, Barley, Butter, Cloths,Drums, Rice, Salt, Tea, Slaves, Teeth and many more.     Commodities which are used as amoney.

 Barter: exchange goods or services for other goods orservices without using money (Oxford English Dictionary)Barter System is the medium of exchange between twopeople for the exchange of goods and services according to their needs. Theycomplete their needs by exchanging goods and services. This system has beenused for centuries before money was invented.Barter SystemThe barter system and the evolutionof early money.n

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