Question

1. Re-order the following terms according to their order of existence.
i. Bank notes
ii. Barter system
iii. Coins
iv. Paper money​

Answer 1

Answer:

barter system

coins

bank notes

paper money

Answer 2

Answer:

Barter system ⇒  Coins ⇒ Paper money​ ⇒ Bank notes

Explanation:

Barter system

• A barter system of exchange is one in which one good or service is swapped for another item or service.
• A system like this is also referred to as a commodity for commodity exchange (i.e. C-C exchange).
• For instance, if someone has extra wheat and desires milk at the same time, they can exchange the wheat for the milk with the other person.

Coins

• The coins were made of electrum, a naturally occurring alloy of silver and gold, and were embossed with images that served as denominations.
• Around 600 BCE, purchasing a clay jar on the streets of Sardis may cost you two owls and a snake.

Paper money​

• China's Yuan dynasty switched from using coins to paper money in 1260 CE.
• In reality, the colonial governments of Europe in North America were the ones to first print paper money.

Bank notes

• The ability for international trade to increase after Europe switched to paper money.
• The first currency market was established when banks and the affluent began purchasing foreign currencies.

#SPJ2