The invention of money was a major improvement in people's lives. In the past, people had to travel all day to find the person willing to exchange their goods. Furthermore, the goods that people want to exchange did not have the standard measurement value. This led to unequal exchanges. It is also not convenient to transport heavy goods from one place to another for an exchange. To solve these problems, money will be the only solution. Subsequently, people tend to develop money from cowrie shells to credit cards for convenience and to improve their society. In the beginning of mankind there was no money. The only way to get what you want is to exchange what you have for it. This system is called barter. Sometimes you will find a person willing to exchange your goods. However, most of the time, it is really difficult to find the person willing to trade with you. Since you are in desperate need of exchange, you will have to travel all day until you meet the right person. In this kind of situation, it will take a long time to find the person who wants to trade with your goods. Economists have referred to these types of problems as transaction costs. It is the time and effort that people spend before they can trade their goods. In the barter economy, transaction costs are incredibly high. Another serious disadvantage of the barter system is that people cannot measure the value of goods. This usually leads to conflicts as people have to make unequal exchanges. In order to reduce transaction costs and conflicts, people developed commodity money. Merchandise is a fundamental element used by almost everyone. In the past, tea, tobacco, salt and sugar were considered commodities. People use these goods to exchange goods. T...... middle of paper...... "Merchant Host Services." Host merchant services. December 4, 2013. "Museum of the National Bank of Belgium." Cowrie shells, a commercial currency -.December 4, 2013. "Wikia". Social evolution of money. 05 December 2013. "De Medici Family: the extraordinary story of the family that financed the Renaissance." Company interior. December 6, 2013. “Origin and Evolution of Money.” Origin and evolution of money. December 4, 2013. .Shirur, Anand. “The Evolution of Money by Anand Shirur.” Evolution of money. 07 December. 2013. .