0 Bewertungen0% fanden dieses Dokument nützlich (0 Abstimmungen)
44 Ansichten8 Seiten
Money is used to pay for various goods and services. It is also used to measure and store value. The currency most traded around the world is the United States dollar. Coins and banknotes are popular items for collectors, especially rare, old and misprinted ones.
Originalbeschreibung:
Originaltitel
Money is used to pay for various goods and services.docx
Money is used to pay for various goods and services. It is also used to measure and store value. The currency most traded around the world is the United States dollar. Coins and banknotes are popular items for collectors, especially rare, old and misprinted ones.
Money is used to pay for various goods and services. It is also used to measure and store value. The currency most traded around the world is the United States dollar. Coins and banknotes are popular items for collectors, especially rare, old and misprinted ones.
Money is used to pay for various goods and services.
It is also used to measure and store value.
Money usually takes the form of coins, banknotes and bank balances. There are a number of different currencies used in countries around the world. Many countries have their own currency, while some use a shared currency. An example of a shared currency is the euro used in the European Union by countries such as France, Germany and Spain. The currency most traded around the world is the United States dollar. Other heavily traded currencies include the euro, Japanese yen and pound sterling (British pound). It is believed that products such as livestock and grain were used to barter (exchange goods and services without the use of money) over 10000 years ago. The first coins were minted (made) around 2500 years ago. Paper money was first used in China over 1000 years ago. The benefit of metal coins is that they are portable and durable. The original value of a British pound was equal to a pound (in weight) of silver. Credit cards were first used in the United States in the 1920s. The US dollar and many other currencies use the dollar sign $ as a symbol. US currency features former presidents such as George Washington ($1 bill), Abraham Lincoln ($5 bill), Andrew Jackson ($20 bill) and Benjamin Franklin ($100 bill). Coins and banknotes are popular items for collectors, especially rare, old and misprinted ones. Inflation decreases the purchasing power of money over time. Interesting Facts about Money Money is king of every business. It is used by the humans for making transactions, for paying debts or for buying goods. Without money, you are nothing. Everyone has its own definition. We collected here some interesting information regarding the Money which is really worth for you. Firstly, we go through some historical facts. After that you will get aware with other informative and funny facts. Some history facts about money Before coming Notes, coins as form of money; Cattle were used by the some of the countries for making transactions. When first time coins were introduced as money, their value was measured by the weight. First time value on the coin was printed by the Lydia which is presently known as Turkey. Paper currency was invented by the China. In 1690; First ever paper money was launched by the Massachusetts Bay Colony in America. After the World War II, All countries accepted to use fiat currencies whose value fixed by the U.S Dollar and value of Dollar is related with the Gold.
Lets take a look of some interesting and funny facts: More than 60 communities of US have own form of currency which is used for local transactions like New York, Berkshire Massachusetts etc. You can change your dollar for other currency form of money in 233 ways. In all over the world, more monopoly money had printed as compared to printing of ral money in all over the world. Weight of humming bird is about 2.5 gram which is exactly equal to the penny weight. There are more chances to come tail on tossing a penny because of more weight of head portion. Paper used in making currency in America is not made up of trees; it is about 75 % cotton and remaining is linen. In some of the countries, Government started to impose tax on Gold and silver to collect tax easier. Some of the public trying to cheat government by buying Gold and Silver so that they have to pay tax less. Invention of money makes easier for thefts. Most of the US people spent money on cocaine; after that anything else. How credit card was invented to replace the cash money Once a time, Frank X. McNamara went with his friends on dinner but he forgot to bring his violet with him. At that moment, he didnt want to feel embarrassing next time so, he created Diners Club Card which was the first credit card. This incident took place in 1949 at New York. About 14 restaurants of that area participated in that scheme whose name get printed on the back of card; first time annual fees was taken as $3. In previous time, Most popular form of money among American and Indian was wampum which was strings of clamshells. What you can do in History money if your money (Currency notes) wass not in good condition In 1916, people used to go Washington D.C; because there was facility available to wash, iron the notes not in good condition. How you can use torn, trashed notes Dont get panic if someone tore your note or note gets burned. Only you have to go to Office of Currency Standards; where they replace the note if you provide them about 51 % of note. Office meets with 2 funny incidents regarding these issues; Note found in the Shotgun which was fired by Gun Owner. Owner just forgot that he also hide note there. A cow found whose stomach was filled with the notes. There is one wow fact regarding the color of notes; Most of the currencies notes are green because of larger availability of green pigment. Barter The first people didn't buy goods from other people with money. They used barter. Barter is the exchange of personal possessions of value for other goods that you want. This kind of exchange started at the beginning of humankind and is still used today. From 9,000-6,000 B.C., livestock was often used as a unit of exchange. Later, as agriculture developed, people used crops for barter. For example, I could ask another farmer to trade a pound of apples for a pound of bananas. Shells At about 1200 B.C. in China, cowry shells became the first medium of exchange, or money. The cowry has served as money throughout history even to the middle of this century. First Metal Money Silver At about 500 B.C., pieces of silver were the earliest coins. Eventually in time they took the appearance of today and were imprinted with numerous gods and emperors to mark their value. These coins were first shown in Lydia, or Turkey, during this time, but the methods were used over and over again, and further improved upon by the Greek, Persian, Macedonian, and Roman empires. Not like Chinese coins, which relied on base metals, these new coins were composed from scarce metals such as bronze, gold, and silver, which had a lot of intrinsic value. Leather Currency In 118 B.C., banknotes in the form of leather money were used in China. One-foot square pieces of white deerskin edged in vivid colors were exchanged for goods. This is believed to be the beginning of a kind of paper money. Noses During the ninth century A.D., the Danes in Ireland had an expression "To pay through the nose." It comes from the practice of cutting the noses of those who were careless in paying the Danish poll tax. Paper Currency From the ninth century to the fifteenth century A.D., in China, the first actual paper currency was used as money. Through this period the amount of currency skyrocketed causing severe inflation. Unfortunately, in 1455 the use of the currency vanished from China. European civilization still would not have paper currency for many years. Potlach In 1500, North American Indians engaged in potlach, a term that describes the exchange of gifts at banquets, dances, and various rituals. Since the trading of gifts was so important in figuring the leaders community status, potlach went out of control as the gifts became more extravagant in an effort to surpass others' gifts. Wampum In 1535, though likely well before this earliest recorded date, strings of beads made from clam shells, called wampum, are used by North American Indians as money. Wampum means white, the color of the clam shells and the beads. Gold Standard In 1816, England made gold a benchmark of value. This meant that the value of currency was pegged to a certain number of ounces of gold. This would help to prevent inflation of currency. The U.S. went on the gold standard in 1900. Depression Because of the depression of the 1930's, the U.S. began a world wide movement to end tying currency to gold. Today, few nations tie the value of their currency to the price of gold. Other government and financial institutions now try to control inflation. Today At present, nations continue to change their currencies. For example, the U.S. has already changed its $100 and $20 banknotes. More changes are in the works.TomorrowTomorrow is already here. Electronic money (or digital cash) is already being exchanged over the Internet. in and of itself, is nothing. It can be a shell, a metal coin, or a piece of paper with a historic image on it, but the value that people place on it has nothing to do with the physical value of the money. Money derives its value by being a medium of exchange, a unit of measurement and a storehouse for wealth. Money allows people to trade goods and services indirectly, understand the price of goods (prices written in dollar and cents correspond with an amount in your wallet) and gives us a way to save for larger purchases in the future.
Money is valuable merely because everyone knows everyone else will accept it as a form of payment - so let's take a look at where it has been, how it evolved and how it is used today. (To learn more about money itself, see What Is Money?)
A World Without Money Money, in some form, has been part of human history for at least the last 3,000 years. Before that time, it is assumed that a system of bartering was likely used.
Bartering is a direct trade of goods and services - I'll give you a stone axe if you help me kill a mammoth - but such arrangements take time. You have to find someone who thinks an axe is a fair trade for having to face the 12-foot tusks on a beast that doesn't take kindly to being hunted. If that didn't work, you would have to alter the deal until someone agreed to the terms. One of the great achievements of money was increasing the speed at which business, whether mammoth slaying or monument building, could be done.
Slowly, a type of prehistoric currency involving easily traded goods like animal skins, salt and weapons developed over the centuries. These traded goods served as the medium of exchange even though the unit values were still negotiable. This system of barter and trade spread across the world, and it still survives today on some parts of the globe. Learn to trade Forex with FXCMs Free Trading Guide Oriental Cutlery Sometime around 1,100 B.C., the Chinese moved from using actual tools and weapons as a medium of exchange to using miniature replicas of the same tools cast in bronze. Nobody wants to reach into their pocket and impale their hand on a sharp arrow so, over time, these tiny daggers, spades and hoes were abandoned for the less prickly shape of a circle, which became some of the first coins. Although China was the first country to use recognizable coins, the first minted coins were created not too far away in Lydia (now western Turkey).
Coins and Currency In 600 B.C., Lydia's King Alyattes minted the first official currency. The coins were made from electrum, a mixture of silver and gold that occurs naturally, and stamped with pictures that acted as denominations. In the streets of Sardis, circa 600 B.C., a clay jar might cost you two owls and a snake. Lydia's currency helped the country increase both its internal and external trade, making it one of the richest empires in Asia Minor. It is interesting that when someone says, "as rich as Croesus", they are referring to the last Lydian king who minted the first gold coin. Unfortunately, minting the first coins and developing a strong trading economy couldn't protect Lydia from the swords of the Persian army. (To read more about gold, see What Is Wrong With Gold?)
Not Just a Piece of Paper Just when it looked like Lydia was taking the lead in currency developments, in 600 B.C., the Chinese moved from coins to paper money. By the time Marco Polo visited in 1,200 A.D., the emperor had a good handle on both money supply and various denominations. In the place of where the American bills say, "In God We Trust," the Chinese inscription warned, "All counterfeiters will be decapitated."
Europeans were still using coins all the way up to 1,600, helped along by acquisitions of precious metals from colonies to keep minting more and more cash. Eventually, the banks started using bank notes for depositors and borrowers to carry around instead of coins. These notes could be taken to the bank at any time and exchanged for their face values in silver or gold coins. This paper money could be used to buy goods and operated much like currency today, but it was issued by banks and private institutions, not the government, which is now responsible for issuing currency in most countries.
The first paper currency issued by European governments was actually issued by colonial governments in North America. Because shipments between Europe and the colonies took so long, the colonists often ran out of cash as operations expanded. Instead of going back to a barter system, the colonial governments used IOUs that traded as a currency. The first instance was in Canada, then a French colony. In 1685, soldiers were issued playing cards denominated and signed by the governor to use as cash instead of coins from France.
Money Travels The shift to paper money in Europe increased the amount of international trade that could occur. Banks and the ruling classes started buying currencies from other nations and created the first currency market. The stability of a particular monarchy or government affected the value of the country's currency and the ability for that country to trade on an increasingly international market. The competition between countries often led to currency wars, where competing countries would try to affect the value of the competitor's currency by driving it up and making the enemy's goods too expensive, by driving it down and reducing the enemy's buying power (and ability to pay for a war), or by eliminating the currency completely.
Despite many advances, money still has a very real and permanent effect on how we do business today. (Follow the development of money in the United States in The History Of Money: Currency Wars.) Money is anything that is commonly accepted by a group of people for the exchange of goods, services, or resources. Every country has its own system of coins and paper money In the beginning, people bartered. Barter is the exchange of a good or service for another good or service, a bag of rice for a bag of beans. However, what if you couldn't agree what something was worth in exchange or you didn't want what the other person had. To solve that problem humans developed what is called commodity money. A commodity is a basic item used by almost everyone. In the past, salt, tea, tobacco, cattle and seeds were commodities and therefore were once used as money. However, using commodities as money had other problems. Carrying bags of salt and other commodities was hard, and commodities were difficult to store or were perishable. Coins and Paper Money Metals objects were introduced as money around 5000 B.C. By 700 BC, the Lydians became the first in the Western world to make coins. Countries were soon minting their own series of coins with specific values. Metal was used because it was readily available, easy to work with and could be recycled. Since coins were given a certain value, it became easier to compare the cost of items people wanted. Some of the earliest known paper money dates back to China, where the issue of paper money became common from about AD 960 onwards. Representative Money With the introduction of paper currency and non-precious coinage, commodity money evolved into representative money. This meant that what money itself was made of no longer had to be very valuable. Representative money was backed by a government or bank's promise to exchange it for a certain amount of silver or gold. For example, the old British Pound bill or Pound Sterling was once guaranteed to be redeemable for a pound of sterling silver. For most of the nineteenth and twentieth centuries, the majority of currencies were based on representative money through the use of the gold standard. Fiat Money Representative money has now been replaced by fiat money. Fiat is the Latin word for "let it be done". Money is now given value by a government fiat or decree, in other words enforceable legal tender laws were made. By law the refusal of "legal tender" money in favor of some other form of payment is illegal. $$$ The origin of the "$" money sign is not certain. Many historians trace the $ money sign to either the Mexican or Spanish "P's" for pesos, or piastres, or pieces of eight. The study of old manuscripts shows that the "S," gradually came to be written over the "P," looking very much like the "$" mark. U.S. Money Trivia On March 10, 1862 the first United States paper money was issued. The denominations were $5, $10, and $20. They became legal tender by Act of March 17, 1862. The inclusion of "In God We Trust" on all currency was required by law in 1955. The national motto first appeared on paper money in 1957 on $1 Silver Certificates, and on all Federal Reserve Notes beginning with Series 1963. At first, coins were produced by merchants as a type of credit system. Over time, the local city-states took over the responsibility of manufacturing coin money. This new tool allowed their economy to explode. Goods from all over the world were shipped into the area, while other items were shipped out. The history of money shows us that it is a medium of exchange for trade. It can be a medium of exchange because it has a clear value that is trusted by everyone.
Money is also a way to store value for the future. So, for example, we can save up our money to buy something expensive in the future.
Finally, money is also a unit of account. It can be counted easily and it enables a clear value to be given to goods. Bibliografy: http://www.sciencekids.co.nz/sciencefacts/technology/money.html http://dailyinfographic.com/wp-content/uploads/2013/04/Money-Facts.jpg http://wow-facts.com/interesting-facts-about-money/ http://library.thinkquest.org/28718/history.html http://www.investopedia.com/articles/07/roots_of_money.asp http://www.kidspast.com/world-history/0066-development-of-money.php http://ec.europa.eu/economy_finance/netstartsearch/euro/kids/money_en.htm http://www.computersmiths.com/chineseinvention/papermoney.htm http://www.scribd.com/doc/25914700/Plastic-Money http://library.thinkquest.org/08aug/00196/whatisbank.htm ]]