“Forms of currency have undergone several changes since early times”. Explain.
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Barter system was an old method of direct exchange of goods. People exchanged services and goods for other services and goods without use of money. It is a very slow and time-consuming process.
Takes time to find potential buyers and then negotiate on something useful that they want to exchange.
It should occur between two people, both would need to have what the other wants and that of same value.
Development of economies, increase in trade, led to use of money as a medium of exchange.
Initially money was made up of variuos metals like gold, silver, bronze, copper.
Paper money comprising of paper notes came to be used.Coins are also used.
Fiduciary money where banks allows an individual to pay in any form like cheques, has also come into existence.
Plastic money in the form of debit-cards, credit cards has also emerged and technological advancements has encouraged net banking, online transactions.
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The earliest forms of currencies was made of metals such as Gold, Silver, Copper and Bronze. With further development, paper money came into use. Today Fiduciary money, where one is allowed to pay in alternate forms such as cheques has also come into being. Forms of currency have changes since early times.
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