The History of Money: From Barter to Banknotes

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What gives money its value?

Being a medium of exchange, a unit of measurement, and a storehouse for wealth

How is money defined based on its functions?

As anything used as a medium of exchange and generally accepted as a means of payment

How does money facilitate trade of goods and services?

By allowing people to trade indirectly and understand the price of goods

What does 'medium' refer to in the context of money?

Go-between responsible for transactions

What makes money valuable according to the text?

Being generally accepted as a form of payment

How does money act as an instrument of convenience between parties?

By enabling satisfaction between parties without resorting to pure barter

What is one of the limitations of a barter system mentioned in the text?

Traders must have products or services of equal value to trade.

What commodity was initially chosen for use as currency, according to the text?

Pieces of fired clay

Why did the use of livestock and grain prove to be difficult as currency?

They deteriorated over time.

What was a limitation of the abundance or scarcity of supply as currency according to the text?

It made it impossible to adjust supply based on economic needs.

Why did ancient societies eventually move away from barter towards using money?

To make transactions simpler and quicker.

What was considered a stable form of currency due to its durability and divisibility?

Gold and Silver

Explore the evolution of money from simple bartering systems to complex banknotes. Learn how money functions as a medium of exchange, unit of measurement, and storehouse of wealth. Understand the significance of money in facilitating trade and enabling economic transactions.

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