Posted by
Jayath Wijayakoon
Money is everything for us....Its anything that is generally accepted as payment for goods and services.We can see many types of money, coins, notes etc...We need money for everything in our life.
History of Money
Many cultures around the world developed the use of money, Mesopotamia referred to a specific mass of barley which related other values in a metric such as silver, bronze, copper etc.Americas, Asia, Africa and Australia used shell money.According to history Lydians were the first people who introduce the use of gold and silver coin.It's thought that these first stamped coins were minted around 650–600 BC.
The system of commodity money eventually evolved into a system of repesentative money. This problem occurred because silver and gold merchants or banks would issue receipts to their depositors, redeemable for the commodity money deposited.These receipts became generally accepted as a means of payment and were used as money. Paper money or banknotes were first used in China during the Song Dynasty. These banknotes, evolved from promissory notes that had been used since the 7th century. However, they didn't displace commodity money, and were used alongside coins. Banknotes were first issued in Europe in 1661, and were again also used alongside coins. The gold standard a monetary system where the medium of exchange are paper notes that are convertible into fixed quantities of gold, replaced the use of gold coins as currency in the 17th-19th centuries in Europe. At the beginning of the 20th century almost all countries had adopted the gold standard, backing their legal tender notes with fixed amounts of gold.
After world war 2, At the bretton Woods Conference most countries adopted fiat currencies that were fixed to the US dollar. The US dollar was in turn fixed to gold. After this many countries pegged their currencies from the US dollar, and most of the world's currencies became legal by anything except the governments' fiat of legal tender.
The system of commodity money eventually evolved into a system of repesentative money. This problem occurred because silver and gold merchants or banks would issue receipts to their depositors, redeemable for the commodity money deposited.These receipts became generally accepted as a means of payment and were used as money. Paper money or banknotes were first used in China during the Song Dynasty. These banknotes, evolved from promissory notes that had been used since the 7th century. However, they didn't displace commodity money, and were used alongside coins. Banknotes were first issued in Europe in 1661, and were again also used alongside coins. The gold standard a monetary system where the medium of exchange are paper notes that are convertible into fixed quantities of gold, replaced the use of gold coins as currency in the 17th-19th centuries in Europe. At the beginning of the 20th century almost all countries had adopted the gold standard, backing their legal tender notes with fixed amounts of gold.
After world war 2, At the bretton Woods Conference most countries adopted fiat currencies that were fixed to the US dollar. The US dollar was in turn fixed to gold. After this many countries pegged their currencies from the US dollar, and most of the world's currencies became legal by anything except the governments' fiat of legal tender.
Friday, August 21, 2009