The document discusses the barter system, one of the earliest forms of exchange where goods and services were directly traded for other goods and services. The barter system dates back to around 6000 BC and originated out of necessity for early civilizations. As wants and desires became more complex, specialization of labor developed and bartering allowed for the exchange of surpluses. Though simple and flexible, bartering also had disadvantages like the lack of a common measure of value and difficulty storing value. The document then briefly introduces the concept of credit cards which originated in the 1920s as a system to overcome some limitations of bartering.

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.