Question

Write a note on the origin of money.

Answer 1

Answer:

Money may be a shell, a metal coin, or a piece of paper with no intrinsic value. Its value is symbolic; it reflects the importance that individuals put on it. The value of money is derived from its functions as a medium of exchange, a unit of measurement, and a store of properties. Money enables people to exchange products and services in an indirect manner, as well as communicate the cost of items and provide people with a long-term means of storing their assets.

• Money has no intrinsic meaning; its value is symbolic since it communicates the significance that people attribute to it.
• People purchased and traded goods prior to the invention of money through a mechanism known as bartering, which includes the direct exchange of goods and services.
• In approximately 600 B.C., the first region of the world to use an industrial facility to produce coins that could be used as currency was Europe, in the Lydia region which is modern-day Western Turkey.
• In around 770 B.C., the Chinese were the first to invent a system of paper currency.