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Answer» Origin and Development of concept of Money: - Initially there was universally acceptable medium of exchange in barter system.
- In agricultural economy the animals like cow, buffalo and horse became the means of exchange values for money and trade.
- Animals are mortal, they get sick and die therefore storage of wealth in the form of animals was not advisable. Hence, valuable minerals – coins were used instead of animals.
- At the onset of imperialism the use of coin started as a medium of exchange of goods and services in the kingdom.
- Democracy and industrialization inspired the need for the modern money as a means of exchange and the money became widely accepted as a means of exchange. The advent of banking system made it easier to transfer and storage of money.
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