WORLD CIVILIZATION

Detailed explanation-1: -The barter system is an ancient method of exchanging goods and services without using money. In this system, people traded goods or services they had for the goods or services they needed. This practice dates back to prehistoric times when people started exchanging goods to meet their basic needs.

Detailed explanation-2: -Before money people used bartered goods as payment; animal hides and teeth. Livestock was the most valuable commodity. The word cattle comes from the Latin words “caput” and “capital” meaning property.

Detailed explanation-3: -Money emerged out of the barter economy whereby Goldsmiths kept gold for people and gave them receipts; instead, those receipts became the “money.” The main reason for emerging of money was the challenges of the barter trade.