History of money
Money is the most important thing in our lives. Without money we would not be able to buy food, water, clothing, shelter (home) or get education. Let’s say, we would not be able to live without money at all. Money is mostly obtained by a society of people for the exchange of goods, services or resources. Every country has its own arrangement of coins and paper money. Many things have been used as commodity money such as precious metals, cowry shells, barley, beads and many other things that are meant to have a value.
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In the starting people used to barter by exchanging goods. Barter is a way to exchange of a good for another good, like a bag of rice for a bag of beans. The seller of a bag of rice has to find a buyer who wants to buy rice and who could also exchange something that the seller wants to buy. There is no ordinary standard of exchange into which both seller and buyer could change their treatable commodities. When barter occurred, it would usually happen between either complete strangers or their enemies.
However, what if somebody couldn’t accept hat something was worth in exchange or you didn’t want what the other person had. To solve that problem people used another way to buy stuff which was called commodity money. A commodity is a simple item used by anyone. In the past, seeds, cattle, tobacco, tea and salt were commodities that were used as money. But, using commodities as money also had some problems. Holding bags of salt and other commodities was hard, and they were difficult to store or would expire. A lot of countries around the world later developed the use of commodity money.
Ancient China, Africa, and India used cowry shells. Japan used kooks which are units of rice. The shekel was an ancient unit of weight and currency. A barley/shekel was Initially both a unit of currency and a unit of weight. Around 5000 B. C metal objects were introduced as money. From early times, people usually favored metal for the use of money. Near 700 B. C, the Lydia became the first In the world to produce coins In gold and silver. Many of the ancient Lydia coins have no writing, called an “Inscription”, only a picture of a symbolic animal.
Soon gold coins were made throughout the world and when the touchstone was discovered It was used for assaying gold coins. Finally the paper currencies were developed In China In the Tang Dynasty during the 7th century. It was later originated In Mongol Empire, Europe, and America. Paper money was Introduced In two forms: drafts, which are receipts for value, held on account, and “bills”, which were Issued with a promise to convert at a later date. Later on countries around the world soon started making their win order of coins with specific values.
Since coins were given a certain value, It became easier to compare the cost of Items people wanted. Money Is very Important In everybody lives, without you want Is possible. The shekel was an ancient unit of weight and currency. A barley/shekel was initially money. Near 700 B. C, the Lydia became the first in the world to produce coins in “inscription”, only a picture of a symbolic animal. Soon gold coins were made throughout the world and when the touchstone was discovered it was used for assaying gold coins.
Finally the paper currencies were developed in China in the Tang Dynasty during the 7th century. It was later originated in Mongol Empire, Europe, and America. Paper money was introduced in two forms: drafts, which are receipts for value, held on account, and “bills”, which were issued with a promise to own order of coins with specific values. Since coins were given a certain value, it became easier to compare the cost of items people wanted. Money is very important in everybody lives, without you want is possible.