Essay On Barter System

HISTORY AND DEVELOPMENT OF MONEY BACK TO THE PRIMITIVE BARTER SYSTEM UNTIL NOW.

Certain people out there think only know to save the money, but mostly they don’t know how the money existed and where the money come from. People only knows the money is very important in their life and without money, some people might get crazy just because want to have money in their hand. According to the book of Financial Services prepared by Anwary Shuhaili and Ana Salwa, anything generally accepted as a means of paying goods and services and paying off debts is called as money. As we know, money can be functioning as a medium of exchange and money is that can be thought as a store of value or purchasing power and thus can be drawn upon at will.

Money has been part of human history for at least 3000 years ago. Before that time, system barter is being used as intermediate tool exchange between others. In the beginner, all of the world use system barter as a medium of exchange. System barter refers to old way of exchange that has been used for centuries and long before money was created. People exchanged services and goods for other services and goods in return. Some people would even argue that system barter

Firstly, barter system is a simple devoid of the complex problems of the modern monetary system. Second, there is no question of over or over-hill employment under barter system since goods are produced just to meet the needs of the society. Besides that, under barter system, the problems of international trade such like foreign exchange crisis and advance balance of payments does not exist. Barter system also has no problem in concentration of economic power into the hands of a few rich persons because there is no possibility of storing the commodities. Other than that, personal and natural resources are ideally utilized to meet the needs of the society without involving any wastage under the barter