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Before the invention of money, people resorted to different means to trade.In this latter system, people exchanged goods for other good oi intrinsic value such as gold, silver and salt.
Before the invention of money, people resorted to different means to trade. One of the earliest recorded systems of trade was the barter system by which people directly exchanged goods or services for other goods or services of their desire. Similar to barter, commodity money was also another system that invoved direct exchange of goods. In this latter system, people exchanged goods for other good oi intrinsic value such as gold, silver and salt. This gave way to the establishment of commercial banks that adopted a similar approach by which people had to trade valuables in return for banknotes or coins. Consequently, the issuing of banknotes and coins was in the hands of commercial banks.
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