Top-Rated Free Essay
Preview

Origin of Money

Good Essays
607 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Origin of Money
What is Money? At first sight the answer to this question seems obvious. A man or woman in the street would agree on coins and banknote which could be known as checks, for a good or a service but would they accept them from any country? They would probably be less willing to accept them than their own country's coins and notes but bank money actually accounts for by far the greatest proportion by value of the total supply of money. Credit cards and gold are some what different. The gold standard belongs to history but even today in many rich people in different parts of the world would rather keep some of their wealth in the form of gold than in official, inflation-prone currencies. Gold is a attractive type of material which led to its use for monetary transactions for thousands of years.
All sorts of things have been used as money at different times in different places. Like amber, beads, cowries, drums, eggs, feathers, gongs, hoes, ivory, jade, kettles, leather, mats, nails, oxen, pigs, quartz, rice, salt, thimbles, umiacs, vodka, wampum, yarns, and zappozats (decorated axes). It is almost impossible to define money in terms of its physical form or properties since these are so diverse. Therefore any definition must be based on its functions, which are units of account, common measure of value ,medium of exchange, and store of value. So with that in mind money is anything that is widely used for making payments and accounting for debts and credits.
Money originated because before that the only form of money is barter and the things that was wrong with barter was that it was inconvenient , in such case it was livestock and whenever someone wanted to trade they would have to bring their herd with them when the transaction took place. The use of primitive forms of money in the Third World and North America is more recent and better documented than in Europe and its study sheds light on the probable origins of modern money. Among the topics treated are the use of wampum and the custom of the potlatch or competitive gift exchange in North America, disc-shaped stones in Yap, cowrie shells over much of Africa and Asia, cattle, manillas and whales teeth. Manillas were ornamental metallic objects worn as jewelry in west Africa and used as money as recently as 1949. They were an ostentatious form of ornamentation, their value in that role being a prime reason for their acceptability as money. Wampum's use as money in north America undoubtedly came about as an extension of its desirability for ornamentation. Precious metals have had ornamental uses throughout history and that could be one reason why they were adopted for use as money in many ancient societies and civilizations. In Fijian society gifts of whales teeth were (and in certain cases still are) a significant feature of certain ceremonies. One of their uses was as bride-money, with a symbolic meaning similar to that of the engagement ring in Western society. Whales teeth were "tambua" (from which our word "taboo" comes) meaning that they had religious significance, as did the fei stones of Yap which were still being used as money as recently as the mid 1960s.
In conclusion money could be anything of value, units of account, had to be durable, and not so vas that everyone could get as much as they wanted. Money wouldn't be much of a value unless the people had faith in it and believe that it will be good for something such as a trade or a services.

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Money is used as a medium of exchange which simply means that money is used by buyers to purchase goods or services from sellers. We could go back to the restaurant example. The restaurant would gladly accept money for its goods and services because money…

    • 269 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    We learned about what money is and what it does. Money is a highly liquid financial asset that’s generally accepted in exchange for other goods, is used as a reference in valuing other goods, and can be stored as wealth (Colander, 2010, p. 313). We learned about how money is created. Banks create money by borrowing money from the public and then lending it back to public with interest. The money is created because they started with the original amount plus the amount that was loaned out minus a reserve that they have to keep.…

    • 507 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Medium of exchange: Money can be used for buying and selling goods and services. If there were no money, goods would have to be exchanged through the process of barter…

    • 532 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Money is a general accepted means of payment for the purchase and selling of goods and services (Pilbeam 2010). These could include purchasing loans, settling debts. Money is also used to as a common unit of account, where prices for products and services can be easily compared. Money can also act as a store of value, where individuals or institutions can deposit them in commercial banks to earn interest over time.…

    • 1757 Words
    • 8 Pages
    Better Essays
  • Good Essays

    Syllabus3381 1

    • 1223 Words
    • 10 Pages

    of money, as well as the institutions and markets that enable the exchange of goods and…

    • 1223 Words
    • 10 Pages
    Good Essays
  • Good Essays

    Humans have long since abandoned relying solely on a barter economy for the alternative of currency. As early as the Mesopotamians and Ancient Egyptians, currency had been created from golden rings and bars in order to accumulate wealth and trading power. Similar concepts and ideas of currency developed independently around the globe in order for society to overcome economic needs. The economic values of European settlers in North America had a profound impact on the ways that the indigenous peoples of the area lived by created a currency from what was once a traditional decoration piece or gift (Kelechava, 2016).…

    • 601 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Federal Reserve Paper

    • 948 Words
    • 4 Pages

    Money was generally created to replace the barter system and is used habitually in the world’s economy in exchange of goods and services. Money is used to perform four functions that are medium of exchange, unit of account, store of value, and standard of deferred payment. Medium of exchange is activated when sellers are willing to accept items in exchange of goods or services. The economy is more resourceful when one item serves as medium of exchange, such as the US dollar. Unit of account is normally used in the barter system, where each good has different prices. Once a single good is used as money, each good has one price as opposed to different prices. Unit of account gives buyers and sellers a way of measuring value in terms of money. Store of value is when money allows value to be simply stored. Conversely, it is not the only store of value. Any asset embodies store of value and value is not solidified and may increase in the future. Standard of deferred payment consists of money facilitating exchange at a given moment by providing medium of exchange and unit of account. Furthermore, it can facilitate exchange over time by providing store of value and standard of deferred payment.…

    • 948 Words
    • 4 Pages
    Better Essays
  • Good Essays

    Money is anything that people are generally willing to accept in exchange for goods or services or in payment of debts. Money has four functions: a medium of exchange, a unit of account, a store of value, and a standard of deferred payment.…

    • 5044 Words
    • 21 Pages
    Good Essays
  • Satisfactory Essays

    History of Dollar

    • 268 Words
    • 2 Pages

    On 15 January 1520, Bohemia began minting coins from silver mined locally in Joachimsthal. The coins were called "Joachimsthaler," which became shortened in common usage to thaler or taler. The German name Joachimsthal literally means Joachim's valley or Joachim's dale. This name found its way into other languages: Czech tolar, Hungarian tallér, Danish and Norwegian (rigs) daler, Swedish (riks) daler, Icelandic dalur, Dutch (rijks) daalder or daler, Ethiopian ታላሪ ("talari"), Italian tallero, Flemish daelder, Polish Talar, Persian Dare, as well as - via Dutch - into English as dollar.…

    • 268 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Currency had its beginnings around the end of the third century B.C., with the start of production of gold coins. Later silver and bronze joined the coin system, replacing the long standing barter system that was used before. This barter system had been used for centuries with cattle being the main means of trade. Pecunia, the Roman word for money being derived from the Roman word pecus meaning cattle. Later as more and more money was being made markings and engravings were added to the coins to raise and lower their value. Now, almost all means of currency can be traced back to these roots; paper money, copper, and other cheaper metals eventually replacing the traditional gold, silver, and bronze.…

    • 639 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    All of this changed in the Renaissance when people started to trade with gold coins. Merchants went from town to town all around Europe trading goods. Obtaining their supply of goods from Craftspeople, also trading with gold coins. As trading became more and more popular, banks were formed as bankers exchanged currency.…

    • 267 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Wirking Money

    • 871 Words
    • 4 Pages

    Money functions as a means to an end in personal relationships by allowing a process to take place without any hassle. For example, transactions are simplified. This being said, it means that individuals are able to complete an uncomplicated exchange of goods. A person, without an established monetary system, would have to make several trades in order to achieve his or her goal. Suppose someone wanted to purchase a lawnmower, but the only thing they owned was hedge clippers and there is no monetary system, only bartering. How many trades would that individual have to make to work up to the lawnmower they wish to own? An established monetary system would end the constant necessity of trading amongst each other. With cash on hand, the individual would have no need to barter or make any amount of…

    • 871 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Week 7 Essay Monitary

    • 505 Words
    • 3 Pages

    The concept of money found a new importance with the prelude to modernity. Before the nineteenth, society was primarily in a primitive economic system. During this time, people were not truly mindful of money and how important it was. Prior to the realization of the importance of money, society dealt primarily with trade. They used trade to earn according to need and it was thought that to earn more than what was necessary was to be sinful. People of this time also used trade to earn according to their desire.…

    • 505 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Paper money was seen as a great way to keep money inside the colonies, and eventually country, and different forms were tried out until in the 19th century banks began to issue banknotes, and this form of currency…

    • 392 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Money is the instrument of exchange. It helps in buying and selling and also in fixing a value on things or services. It may be in metal or in paper. Money is always said to be the root of all evil, but I not agree with it.…

    • 414 Words
    • 2 Pages
    Satisfactory Essays

Related Topics