What is money, history, function, conditions, types and theories?
This is a nice question and I will like to answer this.
Money can be defined as any item or a verified record which is form of paper and coin which is generally accepted as a method and means of payment for any goods and services and it is used as a repayment of debts in a particular place, society, nations and country.
Money supply of different forms of currency such as:
Paper note
Coin
and other valuable items………
THE HISTORY OF MONEY
Years have passed when exchange has come into existence, exchange was not at first done by money which include paper note or coin, they are done through batter (using the goods you have to exchange for another) and this started 1000 years ago or more.
The system of commodity money was eventually brought into the system of representing money. This eventually occurred because gold and silver merchants or banks would always issue receipts to their depositors which was redeemable for the commodity money deposited. Not quite long, these receipts process became generally accepted as a means of payment and were used as money. Paper money or banknotes were first used in China during the Song dynasty which was known as Jiozi.
See Wikipedia for more…………..
FUNCTIONS OF MONEY
Nowadays money is used to exchange many things, because it has served as the means for exchange of anything at any particular time. The functions are listed below:
• As the medium of exchange- Since money is used to intermediate the exchange of goods and services, it is hereby performing the function as a medium of exchange.
• Measure of value
• Store of value
• Standard of deferred payment
TYPES
There are different types of money, They include:
• Fiat
• Paper
• Coin
• Representative and more
• Electronic or digital
But the most types of money that are common this days are the paper, coin, and electronic digital.
CONDITIONS OF MONEY
• There must be the presence of two parties
• There should be at least two commodities
• Transfer of wealth
Hope I have your questions.
Thanks for reading!!!
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