The Development of

Modern Money
Bartering of
everyday
items
(e.g) shells,

A medium of exchange

A few hundred years later,

people began to specialize
into doing specific jobs. As a
result they need to trade
what they have, for what
they didnt have.
As a result, goldsmiths
developed metal coins to

At last, paper money was

developed. ItBanks
had many
qualities that changed the
accessiability and functions of
money forever.

In the beginning, people

A standard
value
metalofcoins
were self-sufficient
and
(unit of account)
independent. They
produced what they needed
A store of value
by themselves. As a result,
they used everyday items
A means of deferred
such as kumara and shells,
payment
to trade with others for the
other things that they

-Enables
Portable
trade to occur
-easy to carry
People
were
beginning
liketime
the
without
the
need
for
bartera to
Durable
-lasts
long
Modern Paper
idea
of money.
People
began
to
-Money
enables
us to
compare
Divisible
-divided
into different
amounts
($1, $5 , $10.)
Money
had
lots
of
it,
so
they
started
the values
of goods and
Homogeni
-recognized by shape, color and size
storing
them in -not
places
thatforged
were and users know its money
services
ty
easily
not
ideal.
-money
can be kept -in
(saved)
Acceptabl
exchange for a range of goods and services
They
would
end up forgetting or
and used
later.
e for
loosing
money.
-this means
you canthe
buy
now
Scarce
-has
value because its not easy to make/find.
Hence,
the
development
of change much overtime, unless
and pay
later
Stable in
-value does not
banks
to
store
money
overcame
Value
theres a lot of inflation.
this problem,

Functions of Modern
Money

Characteristics of
Modern Money

Goldsmiths and