Write 4 pages thesis on the topic barter and monetized systems of exchange. Barter and Monetized Systems of ExchangeDifferent items have worked as money at different times. For instance, tobacco in Am

Write 4 pages thesis on the topic barter and monetized systems of exchange. Barter and Monetized Systems of Exchange

Different items have worked as money at different times. For instance, tobacco in America, chisels in China, gold until the gold standard was abandoned in the 1930s and paper currencies thereafter. Exchange of goods and services people produce and want is critical to satisfying the diverse wants of everyone. Such exchange is possible by using either the barter system or money as a medium of exchange. Barter was prevalent medium of exchange before the advent of money. It remains the principal form of exchange even today in tribal and traditional societies where political institutions are primitive, economies are not yet monetized and social systems are based on traditional practices and communal support. Even in advanced societies and economies like the United States, barter is still carried out to a limited extent in rural areas and public and charitable activities. On the other hand, modern societies and economies like that of the United States rely on money as the main medium of exchange. They have the highly developed political institutions to regulate money and prevent exploitation, manipulation and profiteering that money makes possible. they have monetized economies that help create and accumulate wealth. and they have social awareness that is necessary for people to trust an intrinsically worthless currency note, a mere piece of paper with the central bank’s assurance in small prints, as a medium of exchange. Barter and monetized systems of exchange have their own advantages and disadvantages (benefits and costs).