अनुक्रम (Contents)
Meaning of Money in Ancient Times
The word money’ is derived from the Latin word ‘Moneta”, which was the surname of Roman Goddess of juno. The origin of money is lost Even in the primitive stage, man had some sort of money.
The type of money differed on the nature of man and their livelihood, like, in hunting stage, the spines of animals was used as money in pastoral society.
The livestock, in agricultural society the grains and foodstuffs was used as money in Ancient times, whereas the Greeks used coins as money.
Stages in the Evolution of Money
The evolution of money has passed through the following five stages:
1. Meaning of Commodity Money
Various types of commodities were used as money from the beginning of the human civilization. Skins, bonus, assures. stones, spears, ad axes were used as money. The pastoral society used cattle as money. Precious stones, sea shells, fishhooks etc. were also used as money.
Defects- The use of commodity is money had the following defects:
(i) Difficult to store
(ii) Difficulty in portability
(iii) Problem of indivisibility
(iv) No uniformity in quality
(v) Uncertain supply
2. What is Metallic Money
With the increasing trade relations many countries started using gold, silver, copper, tin ect. as money. Metal was made into coins of predetermined weight.
Gold coins were melted in order to earn more profit by selling it as a metal. As gold became dearer, silver coins were used.
Defects
(i) Not possible to change of the nation.
(ii) It was unsafe and inconvenient to carry precious metals.
(iii) Metallic money was very expensive.
(iv) Being heavy, it was not possible to carry it from one place to another place.
3. What is Paper money
The development of paper money started with goldsmiths, who used to keep gold and issued a receipt promising to return the gold on demand. It led to the development of bank notes.
The bank notes later on were issued by the central bank of the country. The bank money after the first world war has ceased to be as representative money and the fiat money was accepted as money, because it was backed by law.
4. Meaning of Credit money
Cheques are used as money. It is like a bank note and it transfers the money from one person to another person. Cheque is a written order to transfer the money. Now a days large transactions are made through cheques only.
5.What is Near money
Bills of exchange, bonds, savings certificates, treasury bills and debentures are known as near money. They are close substitutes of money and are in the final stage of the evolution of money. Its ownership is transferable by book entry.
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