CMCP REVIEWER 1-7 PDF
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Pamantasan ng Lungsod ng Maynila
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Summary
This document discusses the principles and nature of credit, specifically focusing on the transition from a barter economy to a money economy, and the evolution of money itself.
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ODULE 1: Principles and Nature of M not permit a more convenient and Credit practical trading process later as it HAPTER 1...
ODULE 1: Principles and Nature of M not permit a more convenient and Credit practical trading process later as it HAPTER 1: Emergence and Challenge C involved many difficulties. of the Credit Economy ransition from Barter Economy to Money T Goods that are indivisible, Economy perishable and too heavy to transport made trading slow and T heoriginofmoneyisnotknownas burdensome. Also, as not all the to how, where and when it started andhasnorecordtothateffect.Itis, wants and desires of persons however, certain that early man did coincided or convergedatthesame not use money. He was, in a way, time while there were observed selfsufficient. He produced only the good that he had immediate need inequalities in the values of things for. There was no immediate need exchanged, and with some other for money as he lived in a very realizeddifficultiesofbarter,acall simplewayoflife.Itisbelievingthat men were also very few and for a new tool to improve the crafts therefore competition in the use of of trade was developed leading the natural resources is negligible. societies into the prevalence of money economy. With the passage of time, man learned tointeractwithothersinthe The evolution of money, starting community which gave rise to the with barter to theearlyyears,tothe institutionofsocialcontract,wherein useofdifferentformsofmoney-from mantookcarenotonlyofhimselfbut simple seashells to the more of others whose needs he had to complex metals, until coinagecame meet. The concept of cooperation intobeingfollowedbypapermoney. began to take form. Instead of Whileothercountriesusepolymeror producing just enough to meet the plastic money, the Philippines use needs of his family, he started to coins and bills or paper money as produce a little in excess and the government's credit instrument exchangedsuchwithotherswhodid possessing the legal tender power the same. This exchange was for general acceptability purposes. termed as 'barter system-the direct exchange of commodity for another withouttheuseofmoney',whichdid Pls be good to us, good luckpookies
