UNDERSTANDING MONEY

Money has been used for all daily needs and is a necessity in moving the economy of a country, even money which was originally only used as a medium of exchange, now has changed into multi-function, as well as the types of money that are so diverse especially those used as a medium of exchange.

As is well known in the early days of the introduction of money is a result of the difficulties of society in the past exchanges. The main obstacle in exchanging is that it is difficult to obtain the desired goods and services according to the type of goods and services needed. Constraints like this occur when the economy in one region still uses the barter system to obtain goods and services. Barter system is a system

exchange between goods and goods or goods with services or vice versa. This system is the first system known in world trade. However, this system began to be abandoned due to the many obstacles in each time making exchanges and the introduction of more efficient means of exchange.
Some of the obstacles that are often experienced by barter systems in conducting exchanges include:
To overcome all the obstacles that exist by experts, think of something that can be used as a more efficient and effective medium of exchange. The medium of exchange is what we know by the name "money" as it is today. With the discovery of money all of the above obstacles can be overcome, even the function of money is not just a medium of exchange, but instead switches to other functions that are much broader.
Broad understanding of money is something that can be generally accepted as a means of payment in a particular area or as a tool

debt repayment or as a tool to purchase goods and services. In other words, money is a tool that can be used in exchanging both goods and services in a particular area.
In general money does not only function as a medium of exchange, but also has other functions such as a means of calculating the hoarding of wealth or as a standard for debt repayments. Then the money can usually only be used in one particular region, for example other countries and vice versa, but it could be that one particular country's currency applies in all countries such as the US Dollar.
1. Difficult to find people who want to exchange goods in accordance with the desired needs.
2. It is difficult to determine the value of goods to be exchanged for desired goods.
3. Difficult to find people who want to exchange goods for services owned or vice versa.
4. It's hard to find needs that you want to exchange at a fast pace in accordance with the wishes. This means that to obtain the desired item requires time which is sometimes relatively long.