Mo Ney .: by Sylvia.K and Harshitha.B Y10S
Mo Ney .: by Sylvia.K and Harshitha.B Y10S
Mo Ney .: by Sylvia.K and Harshitha.B Y10S
e y
o n
M BY SYLVIA.K AND HARSHITHA.B
Y10S
WHAT IS MONEY?
Money is anything that is widely accepted or used to exchange for goods.
Today when we think about money we are typically referring to notes and coins. However,
households and businesses also se many other ways of making payments e.g. credit cards
and debit cards.
Money is generally acceptable medium of exchange.
That picture of Og demonstrates specialization- the first step towards a wealthier society. With
specialization people needed to trade and exchange. And this is called barter.
For example:
If a farmer had some spare corn and needed an axe he or she would travel to the market to find
someone who was willing and able to exchange an axe for the corn.
But then came the inconveniences:
Barter, thus became a very inefficient way of trade. This is why people had to make most of their
basic goods and services the needed for themselves and go without many others. Clearly it would be
much easier if there was a single commodity or good that everyone was willing to accept in
exchange for these goods or services.
Spade
money(china) Cowrie shells.
Was an early These have been the
form of coin most widely and
used during the longest used
Zhou dynasty of currency in history.
China (1045 to
256 BC).
Kissi pennies: Shoe
was an iron money(china)
currency made These were
in Sierra Leone first used as a
that circulated medium for
widely through exchange as
Liberia and early as the
Sierra Leone Qin Dynasty
Stage1: and Guinea- (3rd century
The earliest form of trade was goods. Conakry.
Knives, bread, shoes, BC)
cattle were among the things that were
used to trade but soon this method was abandoned due to not having the qualities of money e.g.:
divisibility, portability etc..
Stage 2:
Precious metals such as gold and silver, have always been scarce enough to make them a possible
money. However, trading with metals involved carrying around a weighing scale and tools to cut the
materials which soon became uncomfortable.
Stage 3:
The problem of portability of the metals led to coinage. Precious metals in predetermined weights were
often stamped with face of the king or the queen, and with another stamp to show their value.
The problems of this coinage was:
`The clipping of the coins, meaning chipping away some of the precious metal of the coins making
it less worth
Stage 4:
The paper money. This was issued by early goldsmiths who accepted deposits of precious metals for
keeping in their safes. In return, they issued a paper receipt to the owner. It was quickly realized that it
was easier that these paper claims were easier to exchange goods with that gold.
Stage 5:
Goldsmiths receipts for deposits of precious metals were to become the first paper money, and
goldsmiths the first banks
CHARACTERISTICS OF MONEY
1. Acceptability:
Anything can be used as money as long as it is generally acceptablethis is why a worthless piece of
paper can be used as paper, for example a 10 dollar or 50 euro note.
2. scarcity:
A good money must be limited in supply if people and firms are to value it. For example stones and
pebbles would not be good money as people could simply pick up as many as the liked from anywhere.
3. Divisibility:
It must be possible to divide money of a larger value into smaller values to make small purchases or to
give change, without it losing value. This is why we have notes and coins with different face values to
buy goods and services with different prices to give change.
4. Portability:
Money should be easy to carry around. E.g: how the metals were too uncomfortabkle to carry
around. Paper notes are lightweight and can be folded into a wallet or a purse, while a
handful of small metal coins can be carried easily in your pockets.
5. Durability:
Any good used as money must be hard-wearing(e.g: the metals and cowrie shells)
Money would be useless if it just melted away in your pockets. Coins and notes must be
strong and durable so that they may act as a store of value.
FUNCTIONS OF MONEY
1. A medium of exchange:
Money is generally accepted as a means of payment for most goods. This is the main
function of money anyway.
2. Money is a unit of account:
The price of an item ca be measured in terms of how many units of the currency it is worth.
For instance, a low quality television may cost $200 yet a high-quality television may cost
over $500
Money as a store of
value
A FEW FUN FACTS FOR YOU
A.D. 800 - 900: THE NOSE More Monopoly money is
The phrase "To pay through the nose" comes from
printed annually than real
Danes in Ireland, who slit the noses of those who were
remiss in paying the Danish poll tax. money.
The first woman to appear on U.S. coins wasn't even American she was a
Spanish queen. Featured on a commemorative coin, Queen Isabella of
Spain was the first lady to be cast on a U.S. coin in 1893..
Thank you for
listening!!