The Importance Of Money

Money is something of valuable. It is generally accepted as payment of product and services. Money is important because it is the earliest inventions, formation civilization and also development of trade. Everybody wants money because money can enable people to choose what, when and where they want to buy their needs. Every country in this world has their currency coins and currency paper of its own.

In the last thousands years, the material form that money been taken change considerably which is from cattle and cowries shells to an electric currency. Bartering system use is trading services and goods between two or more people without use any cents of money. This system also is non-monetary system. This system brings benefits to people because it does can see the goodness in exchanging services or product without use the cash because people who lacking of money will get their needs. At the past time, every people have basic commodity such as salt, tea, tobacco and wheat in their daily life. System barter happens when two persons agree to exchange each other their needs. For the example is John wants to exchange coconut with the rice so he must find people that also want to get coconut and that people also has extra rice to exchanged.

Although system barter is good however it also has disadvantages. Firstly is simultaneous desires problem, this is mean people not agrees to exchange their goods with us. Secondly, the difficulty to determine the value of goods because goods