I think they get the sources directly by exchanging something of other type. Like they work for getting the sources.

This is barter- commodity for commodity. This cannot work in advanced economy. You may exchange wheat for cloth if manufactured locally in village. But as commodities and services increase and the manufacturing system gets complex, markets expand, barter system does not work. You need something that is acceptable to all. Money also evaluates services and commodities. Suppose there is no money. Then the car factory owner will promise only car to his supplier of raw materials and employees. The suppliers and employees will have to exchange these cars with others for shoes, hair cutting etc. Is this not funny?

Money is common media of exchange of commodities and services. This also evaluates. Otherwise at what rate you will exchange a refrigerator with hair cutting, shoe shining, vegetables. Money also lets you store and save. Otherwise, you will need to store your surplus commodity. But now you may sell everything that you do not need immediately and get money that you may use later to buy things as required.

Money is matter of functions four- a medium (of exchange), a measure (of value), a standard, a store.

Gulshan ji you explained clearly about Barter system and thanks to sarala.

Yes,barter system in ancient remained for long and long time. :)

But due to this barter system also there are many crimes done in our past ancient time

[quote]But due to this barter system also there are many crimes done in our past ancient time [/quote]

Same as those that are now being committed for money!! Therefore the question is not whether money exists or not, rather it is how prudently and wisely it is made use of! If money is not there, crimes would be committed for something else of value that would take precedence over other things! for instance, during ancient times, Salt was a valuable commodity so in all probability, crimes would have been committed then for possession of salt, something which we consider a very cheap and common place commodity!

People has made different modes of exchanging goods available to them. Money is common medium for them to exchange it easily. However, if money was not created by men, barter system would exist as it was before. That sometimes becomes bit difficult because fractions cannot be measured.

Yes there are many ways of exchanging goods in our older days which we call it as Barter system.

I want to add one more thing that money has made people to do crime and corruption. To some extent it would have been checked if there will be no money. However the life of people will become torturous without money.

If money is not created means crime rate will become slow but not fully dissolved.

If money is not created means crime rate will become slow but not fully dissolved.

In money economy, thieves steal money. In non money, they will steal goods and precious articles and still rape women.

secondly, as I pointed in another post, a non monetary economy can be very primitive. You can have no large scale industries, trade. Consequently no sophisticated and modern weapons. In this scenario, you cannot survive. The advanced nations will use you as we use cattle. They may even kill us as they did to Red Indians in American continent.