All about Currency.

By J. K. Roberts


Evolution is the dynamic process toward maturity and when you talk of the development of currency, the method can be worked back to the seventh or sixth century when money was introduced in the form of coins. Currency or money can be defined as the material or physical form that is satisfactory in places of business and that has a ability to yield many goods and services according to your requirements. Ancient folks used to exchange many items that are related to a specified area or locality. That was applicable when the population was small and the needs used to be limited. But as the population grew, the demand increased as this actual situation was the 1st step toward the development of money.

Barter trade was the first sort of business and it was considered to be the first kind of currency. The history of currency started in the form of barter trade. Concept of money was felt after the increased demand of one item in comparison to that of other items. It's been suggested on here, as an example, that cash was invented to replace the unbalanced barter trade system.

Emergence of currency was witnessed early in 1760 BC in Babylon. They developed a system in which a uniform unit was introduced to compensate the unbalanced use of barter. Commodity cash was the 1st sort of currency appeared.

First proof of cash use was mentioned in Bible in the shape of slave trade. The coins were used as the 1st form of money exchange and these coins were made from valuable metals. Gold coins were first utilized by the Greeks and the weight of those coins was above 8 grams. The history of cash has a lengthened time of coins and these ruled the business for many centuries.

Systematic or standardized coins were used in 700 BC. These were stamped with some sign or symbol. The metal pieces were casted with some types of identification mark and common metals used were gold, bronze and silver.

Coins dominated the currency age for many centuries and a great evolution was noted from stone coins to the metal coins. Paper cash was introduced in 11th century generally in China. It was used together with the coins and that was in the 13th century when paper cash notes were introduced in Western european states. Marco Polo was regarded as the front-runner of introduction of paper money in Europe.

Gold standard cash is a relatively modern term in currency market. This term is used when money can replace an equivalent amount of gold. This indicates the soundness of a currency system and the cash which is most stable has the highest value for the same amount of gold. British pound and Kuwaiti dinar are examples of a number of the strongest currencies of the Earth. After the World War I, many issues were raised which led straight to the demand of a standard currency for the entire world.




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