Define the term `Money` and Explain an Evolution of Money with help of a flow
chart.
Answers
Answer:
Money is an object that is usually accepted as the payment for goods or services.
The evolution of money can be traced back to inception of the Barter system. Barter system of exchange involved the exchange of commodities for commodities. However, such system suffered from various difficulties.
After the Barter system gradually phased out, metals began to be used as a medium of exchange. Gold and silver were the two metals that were of particular importance and were widely in use. Metallic money was in use up-to the first half of 18th century, however; after the 1930s, it also phased out due to increased volume of exchange and transaction.
With the further rise in the volume of trade, paper money came into existence and was widely used. This form of money was easier to carry and store thus, became a medium of exchange among almost all the countries of the world.
Explanation: