n of goods and services according to

 

 

n

The barter system and the evolution
of early money.

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Barter System

Barter System is the medium of exchange between two
people for the exchange of goods and services according to their needs. They
complete their needs by exchanging goods and services. This system has been
used for centuries before money was invented.

Barter: exchange goods or services for other goods or
services without using money (Oxford English Dictionary)

 

Commodities which are used as a
money.

Alcohol, Almonds, Amber, Barley, Butter, Cloths,
Drums, Rice, Salt, Tea, Slaves, Teeth and many more.    

   “The history
of bartering dates all the way back to 6000 BC. Introduced by Mesopotamia
tribes, bartering was adopted by Phoenicians. Phoenicians bartered goods to
those located in various other cities across oceans. Babylonian’s also
developed an improved bartering system. Goods were exchanged for food, tea,
weapons, and spices. At times, human skulls were used as well. Salt was another
popular item exchanged. Salt was so valuable that Roman soldiers’ salaries were
paid with it. In the middle Ages, Europeans traveled around the globe to barter
crafts and furs in exchange for silks and perfumes. Colonial Americans
exchanged 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 the
1930s during the Great Depression. It was used to obtain food and various other
services. It was done through groups or between people who acted similar to
banks. If any items were sold, the owner would receive credit and the buyer’s
account would be debited.            

Some negative points of barter system

1.      Divisibility

2.      Durability

3.      Portability

 

 

1.      Sometime the value of
goods 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 money

1.      World without currency
money

2.      Asian  Cutlery

3.      Coins

4.      Currency

5.      Banks

6.      Money Travel

7.      Mobile Payments

Cattle Currency

The word cattle and capital come from the same word
Latin that is capitalis.

1.      Standard size & weight
made tea “bricks” an ideal commodity money in parts of Asia

2.      In Mongolia, 12–15 bricks
would buy a sheep

3.      In Tibet, 120–150 bought
one camel

4.      In some places tea bricks
still circulate as a medium of exchange

People used cattle as a source of exchange. Everything
is paid by the exchange of cattle like fines for murder and for everything.

Food and tobacco

Food and tobacco is also used as barter system but its
not a good medium of exchange due to spoil, taste and many other reasons like
sometimes the taste preference is difference and sometime eaten by pets.

Clothes

It’s a good medium of exchange because everyone need
clothes to wear but people face difficulties in size and color. Every person
have their own body structure and size and their own color preference.

Coin Money

In 600 B.C., Lydia’s King Alyattes minted the first
official currency. The earliest coin money was made from electrum that’s the
mixture of gold and silver. The picture was stamped on it.

Advantages of metal money

1.      Good source of storage

2.      Countable

3.      Long lasting

4.      Good source of exchange
due to their size.

5.      Everyone can use

6.      Safe and convenience

Paper money

“The first paper currency issued by European
governments was actually issued by colonial governments in North America.
Because shipments between Europe and the colonies took so long, the colonists
often ran out of cash as operations expanded. Instead of going back to a barter
system, the colonial governments used IOUs that traded as a currency. The first
instance was in Canada, then a French colony. In 1685, soldiers were issued
playing cards denominated and signed by the governor to use as cash instead of
coins from France (Beattie,2015)”.

Money Travel

Money Travel increased the level of international
trade. In money travel, many people of different countries purchase the
different currencies from different countries.

Mobile Payments

In 21th century, currency rise their level like now we
can use mobile payments, mobile transfers, apple pay and many other transfers
with our phone. This plays a very big role in our developing business. Cheque
books, paper money, coin money etc.

 

 

 

 

 

                           References

1.                 
Major Disadvantages of the Barter System (2015, Feb 5).
Barter System History: The Past and Present. Retrieved from
https://www.mint.com/barter-system-history-the-past-and-present

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

 

 

 

 

 

 

 

 

 

 

 

 

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

1.                 
Major Disadvantages of the Barter System (2015, Feb 5).
Barter System History: The Past and Present. Retrieved from
https://www.mint.com/barter-system-history-the-past-and-present

                           References

 

 

 

 

 

In 21th century, currency rise their level like now we
can use mobile payments, mobile transfers, apple pay and many other transfers
with our phone. This plays a very big role in our developing business. Cheque
books, paper money, coin money etc.

Mobile Payments

Money Travel increased the level of international
trade. In money travel, many people of different countries purchase the
different currencies from different countries.

Money Travel

“The first paper currency issued by European
governments was actually issued by colonial governments in North America.
Because shipments between Europe and the colonies took so long, the colonists
often ran out of cash as operations expanded. Instead of going back to a barter
system, the colonial governments used IOUs that traded as a currency. The first
instance was in Canada, then a French colony. In 1685, soldiers were issued
playing cards denominated and signed by the governor to use as cash instead of
coins from France (Beattie,2015)”.

Paper money

6.      Safe and convenience

5.      Everyone can use

4.      Good source of exchange
due to their size.

3.      Long lasting

2.      Countable

1.      Good source of storage

Advantages of metal money

In 600 B.C., Lydia’s King Alyattes minted the first
official currency. The earliest coin money was made from electrum that’s the
mixture of gold and silver. The picture was stamped on it.

Coin Money

It’s a good medium of exchange because everyone need
clothes to wear but people face difficulties in size and color. Every person
have their own body structure and size and their own color preference.

Clothes

Food and tobacco is also used as barter system but its
not a good medium of exchange due to spoil, taste and many other reasons like
sometimes the taste preference is difference and sometime eaten by pets.

Food and tobacco

People used cattle as a source of exchange. Everything
is paid by the exchange of cattle like fines for murder and for everything.

4.      In some places tea bricks
still circulate as a medium of exchange

3.      In Tibet, 120–150 bought
one camel

2.      In Mongolia, 12–15 bricks
would buy a sheep

1.      Standard size & weight
made tea “bricks” an ideal commodity money in parts of Asia

The word cattle and capital come from the same word
Latin that is capitalis.

Cattle Currency

7.      Mobile Payments

6.      Money Travel

5.      Banks

4.      Currency

3.      Coins

2.      Asian  Cutlery

1.      World without currency
money

Steps 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 of
goods are different from each other.

 

 

3.      Portability

2.      Durability

1.      Divisibility

Some negative points of barter system

Due to lack of money, bartering became popular in the
1930s during the Great Depression. It was used to obtain food and various other
services. It was done through groups or between people who acted similar to
banks. If any items were sold, the owner would receive credit and the buyer’s
account would be debited.            

 

   “The history
of bartering dates all the way back to 6000 BC. Introduced by Mesopotamia
tribes, bartering was adopted by Phoenicians. Phoenicians bartered goods to
those located in various other cities across oceans. Babylonian’s also
developed an improved bartering system. Goods were exchanged for food, tea,
weapons, and spices. At times, human skulls were used as well. Salt was another
popular item exchanged. Salt was so valuable that Roman soldiers’ salaries were
paid with it. In the middle Ages, Europeans traveled around the globe to barter
crafts and furs in exchange for silks and perfumes. Colonial Americans
exchanged 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 a
money.

 

Barter: exchange goods or services for other goods or
services without using money (Oxford English Dictionary)

Barter System is the medium of exchange between two
people for the exchange of goods and services according to their needs. They
complete their needs by exchanging goods and services. This system has been
used for centuries before money was invented.

Barter System

The barter system and the evolution
of early money.

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