How did money become money?
Money was not always. They changed barter exchange at a certain stage of development of economic relations. Although in the days of barter, there was no money, mankind felt the need for a universal medium of exchange. Initially, the most popular product, which was available in sufficient quantity and was kept for a long time, was the money.
How did the first money come about?
For example, ancient Ethiopians were calculated with salt, the Aztecs - with cocoa beans, and the islanders of Nauru used rats for this purpose. Kauri shells are widely spread - the first international currency. Adopted as an exchange unit in China, they regularly performed their function also in Africa, Thailand and India.
Due to prolonged barter, certain requirements for money were formulated:
- They should not become useless during long-term storage and transfer from hand to hand.
- They just enough to carry with them, and even a small amount should be enough to buy the necessary things.
- Even when divided into the smallest units, their total value should not decrease.
Thus, the role of money was gradually transferred to metals. Initially, it could be metal objects: arrowheads, nails and other utensils. But over time began to appear specially molded banknotes - chased coins. Ease of use has determined their rapid spread.
Gold gained the most popularity. In addition to generally accessible convenient physical properties, such as: prolonged storage, easy division and transportation; Gold possessed a unique characteristic - a limited amount in nature.
Evolution: how did money become money?
Soon a class of merchants began to stand out from the general class. He increased his trade turnovers and the more affluent of them were faced with the fact that it was becoming too difficult to carry metal money. In large volumes, they accounted for considerable weight and occupied a place where they could place the goods. Then some enterprising people began to negotiate with other enterprising people and leave their money in storage, and in return receive written commitments.Anyone presenting this kind of document could get the money back. So the first banks and the first paper money appeared - "written promises".
Another reason for the appearance of paper money - the lack of metal for the production of coins. The mining of gold, silver and copper depended on the state of the mining industry, which could not develop independently, but only in close connection with other sectors of the economy. But there was clearly not enough money (metal) for general development.
Then, in the year 960, new money came to be replaced by new ones - on paper. They were called “flying money” because they were significantly lighter than metal coins. Copper, saved in this way, was allowed for other needs. In Europe, paper money began to be widely used only in the 18th century, and in the 19th century it spread throughout the world and occupied leading positions as a medium of exchange.
This is a brief insight into the story of how money appeared - a specific product that is used to make exchanges between subjects of economic relations.