Question

Answer the question below Please in 150 - 200 words atleast

1. Explain how money evolved over the years?

Answer 1

Money is the best innovation that has taken place till date in modern times.But it involves long historical process behind this evolution.Earlier when money was not evolved ,there was barter system that was exchange of goods with one another.But there were lot of drawbacks behind this Barter system .As a medium of exchange commodities like pearls,tea,cow,leather,cloth and salt were used.It is called Commodity money.
Lack of double coincidence led to the evolution of metallic money like gold and silver.But the issues related to weight and purity of such precious metals created lot of mess .
Finally the Paper money came into the picture which means Currency notes . Paper money had been universally accepted as a medium of exchange.It solved various issues like lack of double coincidence of wants and problem related to store value.But as the volume of transactions were increased even paper money got inconvenient and finally Bank money was introduced .Bank money could be in the form of cheques,drafts and credit cards etc.Thus bank money is the most useful form of money in modern times.It can be used for making large payments as well as eliminated unnecessary risks involved with the transactions.