The evolution of money

 Whatever commodity is acceptable to both buyers and sellers in exchange for goods or services is referred to as money.

It’s the means of payments, especially notes and coins, given and accepted in buying and selling.

Money is dynamic concept that changes with time.

 Over time, different communities have used different commodities as a medium of exchange for goods .i.e.

Metallic money: Some communities accepted the use of precious metals like gold, silver and copper as money.The limit was the scarcity of the precious metal in all countries.

The value was based on the amount of metal in the coin.

Coin age This came after the metallic money.Coins were made as either full-bodied or token coins.A full bodied coin is one whose face value is equivalent to the weight of the coin’s metal.

Cash on paper Coins with entire bodies were dangerous to use as currency.

Goldsmiths were the ones who first introduced paper money, but banks later developed and assumed this role.Governments began to issue paper money as a result of trade growth and development as well as the demand for more of it.

Because the “paper” on which paper money is printed has legal status—hence the term legal tender—it is acceptable for usage.

Money must have the legal tender designation in order to be used in a particular jurisdiction’s exchange of goods and services.Convertible or nonconvertible legal tender is available.

Credit card money eliminates the need for a cardholder to carry cash and coins for transactions.

 Anything must be widely acknowledged as a medium of exchange by all parties in order to function as money.

For money to be valuable and a useful medium of exchange, it needs to be rare.

Coins and notes ought to have the same dimensions, weight, color, texture, and overall quality.

Measure of value: Money is used to express the value of products.

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