Use of animals: Initially, people started using animals as standard measurement value, medium of exchange and as an easier means of storage:
- In olden days agriculture the major sector of the economy and hence there was a large production of crops.
- Producers used to stock the needed produce and sold rest of the crops to buy animals. In Other words they exchanged their crops against animals. They used to then sell animals when they wanted to buy goods or at times even other crops.
- This way animals like horse, cow, and buffalo became the means of exchange and trade. In India cows were considered as wealth and were used for trade in this system. Higher the animals a person possessed more rich and wealthy he was considered.
- The problem with this system was that animals are mortal. They get sick and die. Therefore it was not possible to store the wealth in the form of animals.
