before money was used people simply
00:02
bartered person one gave person to some
00:05
X and received let's say wood in return
00:07
but for this transaction to happen
00:09
person one has to want wood and person
00:12
two has to want eggs if person one
00:14
doesn't want wood and once a knife
00:15
instead then person 2 has to first find
00:18
person three who is willing to give him
00:20
a knife for his work and then give the
00:22
knife to person one so that he can
00:23
receive person one's axe this is to wait
00:27
too complicated therefore a common
00:29
denominator was required something
00:31
desirable that everyone accepts to act
00:34
as a medium of exchange
00:35
that's what money basically is a widely
00:38
accepted medium of exchange people
00:40
simply trade using money and don't have
00:42
to resort to bother it some communities
00:45
use cocoa seeds as money other
00:47
communities use seashells others cattle
00:49
and so on nowadays each country simply
00:52
has its own currency let's assume
00:54
seashells who uses money this means that
00:57
instead of bartering person to pays
00:59
person one let's say two seashells for
01:01
his ex and when person one decides he
01:03
needs a knife from person three he pays
01:05
him in seashells as well because that's
01:07
when everyone in the community uses
How Money Works Explained in One Minute
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