explain the evolution of paper money and advantages of banking money
Answers
Answer:
The metallic coins were unsafe to carry from one place to another. Therefore, traders began to carry the written documents issued by well known financiers as evidence of the quantity of money at their command. The written documents were not actual money, but were accepted and exchanged for money. When such documents were issued by v. Later on the central banks established by the governments started printing notes that had the guarantee of the government. This paper money became legal tender that is the legally acceptable money. No individual can refuse the legal tender in that respective country. The legal tender is called as Rupee in India; Dollar in the USA; Pound in England; Euro in Europe; Yen in Japan; Yuan in China, etc. Advantages of Banking money: As trade and commerce flourished bankers started issuing instruments for still easy transaction. Cheques, drafts, deposit (Credit) receipts etc., thus, came to be used as money. These help inn transactions as well as transfer of money between persons and places.
the evolution of paper money is from the dollar in usa coin
might be useful
thank me