1. THE BARTER
SYSTEM.

2. What does barter
mean?
• It is one of the earliest form of exchanges
• Barter system refers to the system of exchange
where goods and services are exchanged
directly for other goods and services.
• Dates back to as old as 6000 B.C
• Believed to have been first found and
implemented in the Mesopotamian
civilization.

3. ORIGIN.
• During the initial phases of civilization, man’s wants
were basic and few.
• With time these wants and desires increased
• He found it advantageous to adopt the division of
labour and specialize in the production of one/few
goods.
• This led to the act of exchange whereby people
exchanged the surplus goods they have for the things
that they require.
• Food, cloth, salt, weapons etc were among the few
commodities that were exchanged during the initial
stages.

4. ADVANTAGES.
• Simplicity
• Flexibility.

5. DISADVANTAGES.
• Lack of double-coincidence of wants
• No common measure of value.
• Large number of intermediate transactions.
• Indivisibility of commodities.
• Difficulty as store of value.
• Problem of future payments.

6. CREDIT CARDS.
• A credit card is a payment card issued to users
as a system of payment.
• The use of credit cards originated in the
United States during the 1920s.
• The general-purpose credit card was born in
1966.
• The inventor of the first bank issued credit
card was John Biggins.

7. TYPES OF CREDIT CARDS.
• Standard credit cards
• Credit cards with rewards programs.
• Airline mile / frequent flier credit cards.
• Specialty credit cards.