HOW MONEY IS DEVELOPED

HOW MONEY IS DEVELOPED

Money is used as medium of exchange people will use it for paying something they buy or service they get. Long before money is used, people traded their goods directly for other goods. Such trading is called barter. This is not practical because they found difficulties when they wanted something they needed but they did not have things sultable for the barter.
The first money people used where beads, cocoa, beans, salt, shells, stones, tobacco, cloth, and animals hides. Then metals such as cooper, silver, and gold were used to replace them. These metals where more convenient than the first things because they could be easily shaped and carried.
Today people use money which consists of coins and paper. The fist coins were made in Lidya an ancient country wich is now the western Turkey, during 600B.C many countries saw that coins where advantages and they begin to make their own coins.
As early as 1100B.C chinese used miniature bronze tools as medium of exchange whit were development into coins. They began to use paper money during the A.D. 600’s. until the 1600’s Europeans did not adopt the use of paper money although marco polo, an Italian trade who was amazed of the use of paper money insead of coins in china, brought this message to them. In 1800’s most of the paper money was issued by bank of private companies. Now government and central bank take over the issuing of banknotes.