History And Development Of Money

1313 WordsDec 14, 20146 Pages
History and development The emergence and development of money has a long history. One of the major reason for the development of money was due to coincidence of want a person who wanted to sell grain would want another thing in exchange like copper but other person who has copper he wants to have another item for e.g. like leather and there was no unit of account in which money could be measure . So due to the coincidence of wants the concept of Money was emerged. Money made the barter more efficient by offering a commodity that would be widely accepted later. Money derives its value by being a medium of exchange, a unit of measurement and a storehouse for wealth Development of Money took a long process it started first from Barter system where peple traded goods with an equal value. After that commodity money was used in which first cattle was used as a commodity and then salt in different regions different commodities were used for e.g. in Brazil wood sugar and cloth was used. Money was also used in form of objects metals and shells After that it coins such as gold and silver were used as money. They were used as the most common form of money throughout history. The Chinese were the first one to move on to paper money Europeans were using coins until 1,600, for which they started to acquire precious metal from other colonies. Finally Paper currency makes its first appearance in Europe in the 17th century. Banks started to use bank notes for depositors and borrowers.

More about History And Development Of Money

Open Document