What do you know about history of money

WHAT DO YOU KNOW ABOUT HISTORY OF MONEY

Money appeared much later than the formation of the national economy: at first, the ancient tribes used means of exchange (cattle, fish, ornaments were exchanged for bread, meat, fabrics), and different peoples used different means of exchange. For example, in Mexico, cocoa beans were used as "money", on the islands of Oceania - pearls and shells, in Alaska and Canada - the skins of valuable animals.

Such commodity-exchange relations were not very convenient and it became necessary to create a universal exchange equivalent. This is how money appeared. At first, they were metal (in the manufacture in different countries, materials such as copper, silver, bronze were used). Paper money appeared only in 1910 and since then has firmly entered our life.

The emergence of money

The first metallic money, minted coins, appeared in the 7th century BC. They quickly spread around the world, as they had a high cost with low weight and volume. In addition, they could be conveniently transported, stored, combined, and crushed.

With the expansion of commodity-production relations, a need arose to increase the value of the exchange equivalent, and silver and gold became the main money. 910 was a turning point in the history of money development - it was at this time that paper money appeared in China. But if earlier their essence was simply the obligation to issue natural money (of the corresponding value), today the paper banknotes themselves are money.

Money development

The very word "banknote" in translation from English means "bank record" - this name was not chosen by chance, this is clearly evidenced by the history of paper money.

So, the monetary system (both in Russia and in the world) began to actively improve with the emergence of banks. Banks initially performed exclusively the function of custodians of valuables and money. When depositing money, a person received a certificate, which indicated the amount that the bank had in storage. This made it possible to pay not with heavy coins, but with light and convenient certificates. Over time, the certificates themselves began to be equated with money.