Thursday, November 21, 2013

How did the idea of money change from items to notes?

How money started

Money is anything that is widely accepted for the exchange of goods, services, and resources.




      Throughout history, the idea of money has changed drastically, and in the future will change even more. My big question is, "How has the idea of money changed through history?" Today i'm going to talk about how money started. Before money, people bartered, or traded goods for services or other goods. But, what happens if you dont have anything that the other person wants? This is why people created what is called "commodity money." Salt, rice, tea, tobacco, and cattle are all forms of commodity money. However, commodity money was hard to transport, and after that, people turned to coins. Metal coins were introduced around 5000 B.C. Once these were introduced, more and more countries started using it. Metal was used because it was easy to find and easy to make into coins, and since they had a certain value, it was easier to trade. Some of the first paper money has been dated back to ancient China, around AD 960.

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