Describe the evolution of money.
Answers
The evolution of money that we see and use in modern times is a result or outcome of a long historical process of economic needs and necessities in financial or commercial transactions.
Explanation:
In any commercial transaction,money is universally considered as the medium of exchange of any good or service.In modern times,it represents the respective market value of various goods and services anywhere in the world.It basically assists in the commercial exchange of goods and services around the world.Previously,in ancient times,many communities or societies around the world adopted barter system of exchange,signifying exchanging actual tangible goods in various proportional quantities as a medium of exchange in any commercial transaction.Hence,exchange of commodities was a central feature of the barter system.However,various practical deficiencies and limitations of the barter system engendered the use of metallic money which involved the use of various metallic elements or forms such as silver or copper as a medium of commercial exchange.Now,various constraints related to the weight and purity measurement of the metallic money led to the advent of paper money or paper currency which in accompaniment with metallic coins became popular in the markets and were widely used as the main medium of exchange in any commercial market.Later on,storage and security of the paper currency or money became a major issue among people and they needed a safe and secured place to store their paper money.This ultimately gave rise to credit and financial institutions such banks where people could safely store their wealth in the form of paper money and metallic coins.Nowadays,people can conduct any commercial or financial transaction directly through their respective banks which is greatly assisted by the advent of various electronic payment and non cash payment methods.These commonly include net banking,online transfers,debit card or credit card payments,cheque payments and so forth.
Explanation:
evolution of money was mainly through commodity money, metallic money, paper money and bank money. ... Human beings passed through a stage when money was not in use and goods were exchanged directly for one another. Such exchange of goods for goods was called Barter Exchange.