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How did money emerge out of barter economy

User Rickerbh
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Money emerged out of the barter economy when goldsmiths kept gold for people and gave them receipts instead. The receipts became the "money".

In the 1600s, a lot of London merchants would place their gold in locked storage rooms of the goldsmiths in the city for preservation; the goldsmiths would give receipts to the merchants. The receipts could also be cashed in for gold, which had real value.

User Sprhawk
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