How do you convert assets to cash?

I am asking this strictly from the point of economics.





Perhaps we need to imagine we are back in the olden days. Long before money was introduced.





If we were to find gold in the wild, how can this gold be converted into valuables and wealth for us? How would the central bank assess the gold and give it a value.





Likewise, if we were to find oil, how can this oil be converted into cash?





Cash that can be used to pay your workman for digging the oil or gold.

How do you convert assets to cash?
before there was 'cash' there was barter. you want my horse I want a cow and a goat for it you think thats too much so you offer me a cow and a chicken. I agree reluctantly so long as its a cockerel 'cos I know someone who is so desperate for a cockerel that he will a give a goat for it. In simple terms you sell assets for cash! It's always been that way
Reply:It would basically be given a value through demand.





Back before money was introduced, if you found gold, this could possibly be exchanged with something you wanted ie. land / animals etc.





Money is essentially just an IOU that puts a value on things. If you found oil, you can sell the oil for 'x' amount which the buyer promises to pay you, with this promise (IOU) you employ a workman to dig with the promise that you will pay him an agreed value. For the ease of IOU's bank notes were introduced.





This is a very simplified explanation but hope it helps a bit.
Reply:Your textbook can probably explain better than we could. Probably gives those very same examples.