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Originally people simply exchanged goods. A farmer would exchange grain for meat. A farmer would exchange grain for a piece of pottery. Things became complicated if the hunter wanted a clay pot, the potter wanted a fish, the fisherman wanted some grain, and the farmer wanted some meat. Some brilliant individual invented money. It enabled a person to sell what he had and to buy what he wanted. People no longer needed to exchange goods and keep exchanging goods until they got what they wanted.

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14y ago

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