WEBVTT

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before money was used people simply

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bartered person one gave person to some

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X and received let's say wood in return

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but for this transaction to happen

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person one has to want wood and person

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two has to want eggs if person one

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doesn't want wood and once a knife

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instead then person 2 has to first find

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person three who is willing to give him

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a knife for his work and then give the

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knife to person one so that he can

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receive person one's axe this is to wait

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too complicated therefore a common

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denominator was required something

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desirable that everyone accepts to act

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as a medium of exchange

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that's what money basically is a widely

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accepted medium of exchange people

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simply trade using money and don't have

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to resort to bother it some communities

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use cocoa seeds as money other

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communities use seashells others cattle

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and so on nowadays each country simply

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has its own currency let's assume

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seashells who uses money this means that

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instead of bartering person to pays

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person one let's say two seashells for

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his ex and when person one decides he

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needs a knife from person three he pays

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him in seashells as well because that's

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when everyone in the community uses