Barter Exchange

Today, money is such a familiar and pervasive part of our lives that we hardly stop to think about its origin and nature. But we are very much aware that money is important. Anyone including children quickly learn that a piece of paper painted and printed in green color background is the hundred rupees. It is important to know that such papers are valuable because they are money that can be used to buy things. We work for money or express our interest to sell our goods for money. That is money used to buy real things. But in the past real things were used as money. In other words rice,cattle,goat, vegetables or livestock or gold and silver were used as money. People operates transaction without money of any sort. Therefore, a question arises why money is innovated as a useful instrument for exchange of goods and services.

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