EVOLUTION OF MONEY

EVOLUTION OF MONEY Money is a medium of exchange that has evolved over time, serving as a critical component of economies worldwide. Here's an overview of the evaluation of money: 1. Historical Evolution of Money Barter System : Before money, people used the barter system, trading goods and services directly. However, barter was inefficient because it required a double coincidence of wants (both parties needing what the other had). Commodity Money : Early forms of money were commodities with intrinsic value, like gold, silver, and cattle. These commodities were valuable in themselves and could be used as money. Metal Coins : The use of metal coins began around 600 BCE in Lydia (modern-day Turkey). Coins standardized value and were easier to carry and trade compared to bulky commodities. Paper Money : First used in China around the 7th century, paper money represented a claim to a commodity or coin. It eventually spread worldwide, becoming the primary form of ...