“Forms of currency have undergone several changes since early times”. Elucidate.
The following points may help you:
a. Money is an important medium of exchange for any transaction between tow or more people.
b. It gives purchasing power to the individual and allows for the purchase of goods and services,
c. In earlier times, individuals used grains, cattle as money.A barter system was used as an old method of exchange. People exchanged services and goods for other services and goods . This was possible only in a simple economy but after the development of economy, direct exchange of goods without the use of money, was not possible.
d. As bartering is a very slow and time-consuming process.
e. It takes time to find potential buyers and then negotiate on something useful that they want to exchange as for barter to occur between two people, both would need to have what the other wants and that of same value.
f. Development of economies, increase in trade, development of currency led to using of money as a medium of exchange
g. Later metal money, made up of gold, silver, bronze, copper coins were used.
h. As society advanced, paper money comprising of paper notes came to be used. Coins are also used . hey are also known as fiat money.
i. Then there is also commercial bank money or also referred as demand deposits which are the deposits made by the people in banks can be withdrawn .It has emerged as the most convenient form of money.
j. Fiduciary money where banks allows an individual to pay in any form like cheques, has also come into existence.
k Along with this, plastic money in the form of debit-cards, credit cards has also emerged
l. Technological advancements has encouraged net banking, online transactions.
a. Money is an important medium of exchange for any transaction between tow or more people.
b. It gives purchasing power to the individual and allows for the purchase of goods and services,
c. In earlier times, individuals used grains, cattle as money.A barter system was used as an old method of exchange. People exchanged services and goods for other services and goods . This was possible only in a simple economy but after the development of economy, direct exchange of goods without the use of money, was not possible.
d. As bartering is a very slow and time-consuming process.
e. It takes time to find potential buyers and then negotiate on something useful that they want to exchange as for barter to occur between two people, both would need to have what the other wants and that of same value.
f. Development of economies, increase in trade, development of currency led to using of money as a medium of exchange
g. Later metal money, made up of gold, silver, bronze, copper coins were used.
h. As society advanced, paper money comprising of paper notes came to be used. Coins are also used . hey are also known as fiat money.
i. Then there is also commercial bank money or also referred as demand deposits which are the deposits made by the people in banks can be withdrawn .It has emerged as the most convenient form of money.
j. Fiduciary money where banks allows an individual to pay in any form like cheques, has also come into existence.
k Along with this, plastic money in the form of debit-cards, credit cards has also emerged
l. Technological advancements has encouraged net banking, online transactions.