Currency and Money

Topics: Money, Currency, Commodity money Pages: 13 (4868 words) Published: April 15, 2013
Money doesn’t buy happiness but it helps.
Money has become one of the main things in our modern life. Some people live their lives to earn money. They work hard, trying to earn as much money as they can. Some of them become crazy about it and lose their dignity hunting money. They don’t appreciate such important things as family, friendship, love and other feelings. Such people become greedy, they spend their lives in loneliness. I don’t deny that money influences our life a lot. As W.S. Maugham said “ Money is like the sixth feeling without which you cannot make a complete use of the other five.” I quite agree. A person can’t be happy if he has no money to satisfy his natural needs. But I think that money should have a limit. A person shouldn’t have too much money. It begins destroying him and becomes his curse. It is said in the Bible that “The love of money is the root of all evil.” Yes, big sums of money really bring different problems because people feel very envious and jealous of other’s fortune. The majority of all the crimes are made because of money. -------------------------------------------------

I’m among the people who consider that money is not all-powerful. Humanity, dignity, intelligence, kindness and other good qualities of a person can’t be bought for money. We’ll never be able to buy pure love, real friendship and loving and caring family. But life isn’t worth living without these things. It’s not worth living if money has become the point of it either.


MONEY IS USED FOR BUYING OR SELLING GOODS, FOR MEASURING VALUE AND FOR STORING WEALTH. Almost every society now has a money economy based on coins and paper notes of one kind or another. However, this has not always been true. In primitive societies a system of barter was used. Barter was a system of direct exchange of goods. Somebody could exchange a sheep, for example, for anything in the market place that they considered to be equal value. Barter however was a very unsatisfactory system because people’s precise needs seldom coincided. People needed a more practical system of exchange, and various money systems developed based on goods, which the members of a society recognized as having a value. Cattle, grain, teeth, shells, features, skulls, salt, elephant tusks and tobacco have all been used. Precious metals gradually took over because, when made into coins, they were portable, durable, recognizable, and divisible into larger and smaller units of value.

A coin is a piece of metal, usually disc-shaped, which bears lettering, designs or numbers showing its value. Until the 18th and 19th centuries coins were given monetary worth based on the exact amount of metal contained in them, but most modern coins are based on face value, the value the governments choose to give them, irrespective of the actual metal content. Coins have been made of gold (Au), silver (Ag), copper (Cu), aluminum (Al), nickel (Ni), lead (Pb), zinc (Zn), plastic and in China even from pressed tealeaves. Most governments now issue paper money in the form of notes, which are “promises to pay". Paper money is obviously easier to handle and much more convenient in the modern world. Checks, bankers, cards and credit cards are being used increasingly and it is possibly to imagine a world where “money” in the form of coins and paper currently will no longer be used. Even today, in the U.S many places-especially filling stations-will not accept cash at night for security reasons. .

Barter and the Double Coincidence of Wants

As long as specialization was limited, desirable trades were relatively easy to uncover. As the economy developed, however, greater specialization in the division of labor increased the difficulty of finding goods that each trader wanted to exchange. Rather than just two possible types of producers, there were, say, a hundred types of producers, ranging from potters to shoemakers. The potter in need of new shoes might...
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