Before a person can legally take any product or service that he wants, he needs to pay for it. Presently, one uses banknotes to pay for the goods and services. The most common form of payment nowadays are coins and paper bills to it is easier and more convenient to be bringing them around.
Before the first money was used, the people acquire the things they need in a barter system. In this system, a person will have to give the merchant something that has the same value of what he is going to take. The goods did not have a specific value universally set for it, so it depends upon the merchant to decide.
If one merchant does not accept your offer, you may go on to the next vendor until you find one who is willing to trade with you or offer other goods that you have. You may negotiate with the vendor until you come into terms.
Through the years, a new medium of exchanged was used, but the system remained. The animal skins, salt and weapons have been used as currency. There was still no fixed value for the items making them negotiable.
The people later realized how cumbersome it is to be bringing along some of the tools or weapons every time they need to get something. Hence, a newer and lighter medium of exchanged was introduced. The first coin is said to have been minted in Lydia. However, it was the Chinese who first recognized its use.
The first coins were minted in 600 B. C. These were made of electrum, a combination of the elements silver and gold which naturally occurs then stamped with different pictures that serve as its denominations. This move increased the country's internal and external trade, which made them among the richest empires.
The first coins have holes at the center making it easier to bring them by stringing them together in a rope. However, coins also have some disadvantages. If someone is trying to buy something with a higher value, he will have to bring along a large string of coins. To address this problem, the rich people during that time entrusts his coins to a servant and just writes its total value in a piece of paper. This paved the way to the present banknotes.
Before the first money was used, the people acquire the things they need in a barter system. In this system, a person will have to give the merchant something that has the same value of what he is going to take. The goods did not have a specific value universally set for it, so it depends upon the merchant to decide.
If one merchant does not accept your offer, you may go on to the next vendor until you find one who is willing to trade with you or offer other goods that you have. You may negotiate with the vendor until you come into terms.
Through the years, a new medium of exchanged was used, but the system remained. The animal skins, salt and weapons have been used as currency. There was still no fixed value for the items making them negotiable.
The people later realized how cumbersome it is to be bringing along some of the tools or weapons every time they need to get something. Hence, a newer and lighter medium of exchanged was introduced. The first coin is said to have been minted in Lydia. However, it was the Chinese who first recognized its use.
The first coins were minted in 600 B. C. These were made of electrum, a combination of the elements silver and gold which naturally occurs then stamped with different pictures that serve as its denominations. This move increased the country's internal and external trade, which made them among the richest empires.
The first coins have holes at the center making it easier to bring them by stringing them together in a rope. However, coins also have some disadvantages. If someone is trying to buy something with a higher value, he will have to bring along a large string of coins. To address this problem, the rich people during that time entrusts his coins to a servant and just writes its total value in a piece of paper. This paved the way to the present banknotes.
Understanding The History Of Banknotes
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