Historical Development of Money - SS1 Economics Lesson Note

The historical development of money can be traced back to ancient civilizations, where people used bartering as a means of trade. Bartering, however, had limitations, as it required a coincidence of wants between two parties.

 To solve this problem, people began using commodities such as cowrie shells, salt, and precious metals as a medium of exchange. These commodities eventually evolved into coins and paper money, which became widely accepted in trade and commerce.