Money as we know it today has undergone

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Money as we know it today has undergone


Money as we know it today has undergone a long process of development. At first, people did not know the exchange because each person strives to meet the needs of their own business. Humans hunt if he is hungry, make your own clothes from simple ingredients, find fruit for their own consumption; in short, what is obtained is used to fulfill the requirement. Further development of the human face on the fact that what was produced was not enough to deliver all their needs. To obtain goods not produced by themselves, they are looking for people who want to exchange goods with other goods owned by him required. Consequently there sistem'barter'yaitu goods exchanged goods. But in the end, many of the perceived difficulties with this system. Among these are difficult to find people who have the desired item and want to exchange its goods and difficulties in obtaining goods that can be exchanged with each other with the exchange of a balanced or nearly equal value. To fix this, start-ups thoughts to use certain objects to be used as a medium of exchange. The objects are
defined as the exchange of objects is received by the public (generally accepted) objects selected value (scarce or have the magical and mystical), or objects that represent the primary day-to-day ; such as salt, which the Romans used as a medium of exchange or as payment of wages. Roman influence is still seen until now: the Englishman mentioned salary as salary, which comes from the Latin word meaning salarium salt.
Goods that are considered beautiful and valuable, as these shells, was used as a medium of exchange before humans discovered the coins.

Although the exchange rate has no difficulty in translation remains. Difficulties, among other things because it is a tool of exchange does not have to determine the fraction of the money, storage (storage), and transportation (transportation) becomes difficult, and the difficulty arises from a lack of resilience objects until crumbly or non-durable. Then came what was called the coin. Products chosen as a medium of exchange because it has a high value to the rage, durable and not easily broken, easily broken without reducing the value, and easily moveable. Metal used as a medium of exchange for meeting these requirements is gold and silver. Coins of gold and silver is also referred to as the money (full bodied money). That is, the intrinsic value (the material) is equal to the nominal value (the value listed on the currency). At the time, everyone is entitled to forge money, melt, sell or use, and has an unlimited right to store coins. Along with economic development, difficulties arise when the development of a notion of exchange should be treated with increased while the number of coins of precious metals (gold and silver) is very limited. Use of the coin is also difficult to account for the large amount of paper money that was created first paper money in circulation is evidence of ownership of gold and silver as a tool / medium to make transactions. In other words, paper money in circulation at the time the money is guaranteed to be 100% by gold or silver stored in the smart gold or silver and can be redeemed at any time with full warranty. In a further development, the people no longer use gold (live) as a means of exchange. Instead, they make 'paper evidence' is as a medium of exchange.


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