Inception Of Money

Money is anything that is commonly accepted by a group of people for the exchange of goods, services, or resources. Every country has its own system of coins and paper.

In older days people didn’t have money. So most of the people bartered. So it was like bag of rice bartered for a bag of beans.

So people didn’t care what was more worth full was and what was not.So to get rid of this big problem they made commodity money

A commodity is a basic item used by almost everyone. In the past, salt, tea, tobacco, cattle and seeds were commodities and therefore were once used as money.
Now the big question is that where the money did came from?

So Metals objects were introduced as money around 5000 B.C. By 700 BC, the Lydian’s became the first in the Western world to make coins. Countries were soon minting their own series of coins with specific values. Metal was used because it was readily available, easy to work with and could be recycled. Since coins were given a certain value, it became easier to compare the cost of items people wanted.

Some of the earliest known paper money dates back to China, where the issue of paper money became common from about AD 960 onwards.

Now about flat money-

With the introduction of paper currency and non-precious coinage, commodity money evolved into representative money
This meant that what money itself was made of no longer had to be very valuable.

Representative money was backed by a government or bank's promise to exchange it for a certain amount of silver or gold. For example, the old British Pound bill or Pound Sterling was once guaranteed to be redeemable for a pound of sterling silver.

For most of the nineteenth and twentieth centuries, the majority of currencies were based on representative money through the use of the gold standard

So that is about something I know about how money came....

Thanks for reading
By
Yash Gupta….