CHAPTER 1- THE EMERGENCE AND CHALLENGE OF THE

CREDIT ECONOMY

TRANSITION FROM BARTER ECONOMY TO MONEY

ECONOMY

The early stage of human history was marked by

economics self-sufficiency of small family units. Able-
bodied member of family units were charged with the
task and responsibility of providing the basic needs of
life, such as: food, clothing and shelter.

Barter. The act of trading goods and services between

two or more parties without the use of money.
Bartering benefits individuals, companies and countries
that see a mutual benefit in exchanging goods and
services rather than cash, and it enables those who are
lacking hard currency to obtain goods and services.

The complicated money and credit exchange system of

today is the product of a long process of evolution. It
had its crude beginning in a barter economy.