The need for money comes from the fact that different people in society produce different things. This (1)___________ that people depend on each other for goods and (2)___________. Let us take the (3)___________ of a farmer who produces more food than he requires and a carpenter who earns a (4)___________ by selling the tables and chairs that he has made. It will be obvious that (5)___________ some means of exchange is found, the farmer will not be able to get (6)___________ of his surplus food and the carpenter, having nothing to eat, will (7)___________ to death! Clearly, the possible means of exchange for them to use will be barter – in other (8)___________, to exchange a certain amount of one kind of goods ((9)___________ say flour) for a certain amount of another (tables or chairs, in this case).
Obviously, barter can (10)___________ only in a very simple society. In an advanced society one can’t go around carrying things in the hope that he can exchange them for the right things he needs. So, we need something that will stand for the goods and services that we want to exchange. That accounts for the origin of money.