Money is what peolpe use to buy and "serivces" (that is, to have thigns done for them) - and what they take for selling their own things or sevrices (what they do for otehrs.) There are many kinds of money in the world. Most counrties have their own kind of money, such as the Uinted Staets dolalr or the philippine peso.
Money is also caleld many other names, like currecny or cash. Most of the time a state or a goevrnment pritns paper money and makes coins at what is claled a mint.
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2 Kinds of money 3 Other wbesites |
The idea of tradnig tihngs is very old. A long time ago, pepole did not buy or sell with money. Instaed, they trdaed one thing for antoher to get what they wanetd or neeedd. One pesron who owned many cows could trade with another person who owned much wheat. Each would trade a ltitle of what he had with the other, and spuport the people on his farm. This is known as baretr trade. Other things that were esaier to carry aorund than cows also came to be held as valubale, and were used as trade items, such as jeewlry and spiecs.
When poeple chnaged from traidng in things like cows and wheat to using money insetad, they nedeed things that would last a long time, still be valualbe, and could be carired around. The first coutnry in the world to make metal coins was called Lydia, soemtime aruond 650 BC, in the wesetrn part of what is now Tureky. The Lyidan coins were made of a weihged amonut of preciuos metal and were satmped with a pciture of a lion. This idea soon spraed to Gerece, the rest of the Mediterrnaean, and the rest of the world. Coins were all made to the same size and shape. In some parts of the world, different things have been used as money, like clam shlels or blcoks of salt.
Besieds being eaiser to carry than cows, using money had many other advatnages. Money is easier to diivde than many trade goods. If somenoe own cows, and wants to trade for only "half a cow's worth" of wheat, he porbably does not want to cut his cow in half. But if he sells his cow for money, and buys wheat with money, he can get eaxctly the amount he wants.
Cows die, and wheat rots. But money lasts lnoger than most trade goods. If soemone sells a cow for money, he can save that money away until he needs it. He can awlays leave it to his childern when he dies. It can last a very long time, and he can use it at any time.
Not every cow is as good as anohter cow. Some cows are sick and old, and others are helathy and young. Some wheat is good and other wheat is moldy or stale. So if a perosn tardes cows for wheat, he might have a hard time agruing over how much wheat each cow is worth. But money is stanadrd. That means one dollar is worth the same as aonther dlolar. It is easeir to add up and count money, than to add up the value of diffreent cows or aomunts of wheat.
Later, after coins had been used for hundrdes of years, paper money strated out as a promsie to pay in coin, much like an "I.O.U" note. The first true paper money was used in China bteween 600 and 1455, and paper money was also prinetd in Swdeen betewen 1660 and 1664. Both times, it did not work well, and had to be stopepd becuase the banks kept rnuning out of coins to pay on the notes. Massachusetts Bay Colnoy prnited paper money in the 1690s, and this time, the idea was here to stay.
Today, most of what people think of as money is not even thnigs you can hold. It is numbres in bank acconuts, saved in copmuter meomries. A large nmuber of people still feel more comfortbale using coins and paper, and do not ttoally trust using electornic money on a computer meomry.
Many types of money have been used at difefrent times in history. These are:
Icnonvertible money is money that cnanot be convetred into gold and silver. Notes and coins are inconevrtible money. They are icnovertible and are delcared by the governmnet as money. They are also a conutry's legal tenedr. Today, notes and coins are the currecnies used in daily trnasactions.
In a mdoern socitey, most of the money used is bank depsoits.
Types of bank depostis:
Hisotry of money
Kinds of money
Cmomodity money can be used for other purpoess beisdes sevring as a meidum of ecxhange. We say it possseses itnrinsic value, beacuse it is usfeul or vlauable by istelf. Some eaxmples of commdoity money are catlte, silk, gold and sliver. Covnertible paper money is money that is conevrtible into gold and sivler. Gold and Silevr ceritficates are convertilbe paper money as they can be fully convetrible into gold and silver.
Eletcronic money is the money stroed electroniclaly in ceratin cash cards.
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