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Aktuelle Version vom 5. August 2019, 16:25 Uhr

Originally exchange came about without the use of money, by barter. Long before money had enter in to the commercial world people exchanged goods for goods. This system of barter made it feasible to meet many wants that could otherwise have gone unsatisfied. Barter raised the common of living, but under a real system the exchange of merchandise was greatly hampered. To barter necessitates that both buyer and seller need each other's goods. Again, indivisible quantities hindered the exchange, since half a canoe or half a cow cannot get into barter. Nor was there under the barter system any standard of worth. A ratio was expressed between canoes and arrows whenever they were traded for each and every other, but this kind of exchange gave no hint regarding the ratio of bread to satisfy, or perhaps of canoes to meet. Because of these disadvantages money was introduced in to the commercial system just as one intermediary, in which all goods may be sold and with which all goods might be bought. Thus money serves its first function, like a medium of exchange.



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