History of Money Essay

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ENGINEERING ECONOMICS History of Money (Assignment) Submitted by: Sakinah Ulandari (12522030) Aditya Ardi Nugraha (12522259) International Program INDUSTRIAL ENGINEERING DEPARTMENT FACULTY OF INDUSTRIAL TECHNOLOGY UNIVERSITAS ISLAM INDONESIA 2014 History of Money Money as we know it has undergone a long development process. At first, the people are not familiar with the exchange because each person trying to meet their needs on their own. Humans hunt if he is hungry, make their own clothes from simple ingredients, looks for fruits for their own consumption; in short, what is obtained that is used to meet their needs. Subsequent development of the human confronts the fact that what is produced is not enough to satisfy all needs. To obtain the goods cannot be produced by themselves, they are looking for people who want to exchange goods with other goods owned by him required. As a result came the barter system (goods in exchange for goods). But in the end, many of the perceived difficulties with this system. Among these are difficult to find people who have the desired item and want to exchange its goods as well as the difficulty to obtain goods that can be exchanged with each other to exchange value equal or nearly equal in value. To fix this, start arising thoughts to use certain objects to be used as a medium of exchange. The objects are defined as a medium of exchange that is the objects received by the public (Generally Accepted) objects selected high value (difficult to obtain or have a magical and mystical value), or objects that is a primary need day-to-day ; such as salt used by the Romans as a medium of exchange or as payment of wages. The influence of the Romans are still visible to this day: the British refer to as a wage salary comes from the Latin meaning salarium salt. Although the exchange of existing instruments, there remain

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