MONEY IS USED FOR BUYING OR SELLING GOODS, FOR MEASURING VALUE AND FOR STORING WEALTH.Almost every society now has a money economy based on coins and paper notes of one kind or another. In primitive societies a system of barter was used. Barter was a system of direct exchange of goods. Somebody could exchange a sheep, for example, for anything in the market place that they considered to be equal value. Barter however was a very unsatisfactory system because people’s precise needs seldom coincided. People needed a more practical system of exchange, and various money systems developed based on goods, which the members of a society recognized as having a value. Cattle, grain, teeth, shells, features, skulls, salt, elephant tusks and tobacco have all been used. Precious metals gradually took over because, when made into coins, they were portable, durable, recognizable, and divisible into larger and smaller units of value. A coin is a piece of metal, usually disc-shaped, which bears lettering, designs or numbers showing its value. Until the 18th and 19th centuries coins were given monetary worth based on the exact amount of metal contained in them, but most modern coins are based on face value, the value the governments choose to give them, irrespective of the actual metal content. Coins have been made of gold, silver, copper, aluminum, nickel, lead, zinc, plastic and in China even from pressed tealeaves. Most governments now issue paper money in the form of notes, which are “promises to pay". Paper money is obviously easier to handle and much more convenient in the modern world. Checks, bankers, cards and credit cards are being used increasingly and it is possibly to imagine a world where “money” in the form of coins and paper currently will no longer be used.
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What is money used for?
What is money economy based on?
What system instead of money was used in primitive societies
Why was barter a very unsatisfactory system of echange
In what form do most governments issue paper money now
What kinds of money are being used increasingly