Money: types and essence

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Cash and non-cash money is, one might say, the "blood" of the economy. They measure both the budget of states and the well-being of individual families. The essence and types of money will be described below.

Once upon a time, many thousands of years ago, in a primitive society there were no means of circulation. Economic relations were limited to barter - "a piece of cake". But with the development of society, it turned out that not all things can be found something of equal value. Therefore, people began to use items that played the role of an intermediary in barter. This is how the first money appeared. Their species were very diverse. In the role of money were those goods that were most in demand. These are: animals, pieces of s alt, valuable furs, rare stones, dishes, precious metals. The latter eventually replaced all other money. The types of gold and silver circulation methods that were originally used are ingots, jewelry, bars. Coins with images of rulers or gods worshiped by the local population appeared a little later. Precious metals were used as a medium of exchange, since they were a very rare material and did not succumb to oxidation, which means that products made from them were stored for a long time.

The first establishments that began to accept money at interest appeared in the Middle East, or rather, in the Babylonian Empire. It was safer and more profitable to store large amounts of gold in such safe places than to hide it at home. Banking in Europe ceased to exist after the fall of the Roman Empire. But it revived after the first crusades. At the beginning of the eighteenth century, European banks began to issue receipts to their depositors indicating how much money they had deposited into the account. Over time, investors realized that banknotes are also a means of circulation. Such money was much more convenient than bulky and heavy bags of coins. In the last century, banknotes finally supplanted gold and silver.

Money is different. Their types today are very diverse. You can pay for services or goods not only with banknotes. What are the forms and types of money?

Promissory note is an obligation to pay funds after a certain period of time. It, as a rule, does not contain information about the deal being concluded. Credit money is used if the purchase and sale is carried out in installments. In this case, one of the parties to the transaction will repay the debt after a specified period. A banknote is essentially a perpetual debt obligation backed by a country's central bank. A check is an order to pay a certain amount to a recipient. In recent decades, in connection with the development of scientific and technological progress, electronic money has appeared. Types of such means of circulation: plastic cards andelectronic systems. The latter include the notorious WebMoney, Qiwi, Yandex-Money and others. Electronic wallets have password access restriction and data protection. The most popular and reliable system of Internet payments at the moment is WebMoney. In order to withdraw money from Webmoney, you need to verify the phone number. This is also necessary if you want to open a wallet in this system.