Explain the evolution of money
rn
The evolution of money can be traced back to inception of the Barter system. Barter system of exchange involved the exchange of commodities for commodities. However, such system suffered from various difficulties.
After the Barter system gradually phased out, metals began to be used as a medium of exchange. Gold and silver were the two metals that were of particular importance and were widely in use. Metallic money was in use up-to the first half of 18th century, however; after the 1930s, it also phased out due to increased volume of exchange and transaction.
With the further rise in the volume of trade, paper money came into existence and was widely used. This form of money was easier to carry and store thus, became a medium of exchange among almost all the countries of the world.
Now-a-days, bank money has become the most convenient and durable form of money. Individuals frequently use credit money in the form cheques, drafts, credit card etc. Along with this, plastic money in the form of debit-cards has also emerged as an attractive medium of exchange. Moreover, net banking facilities and online transactions have further reduced the risked involved in carrying paper money.