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History of money

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Presentation created to teach underprivileged children about the history of money, meant for age group 8-13.

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History of money

  1. 1. WHAT IS MONEY? Money is any clearly identifiable object of value that is generally accepted as payment for goods and services and repayment of debts within a market or which is a legal tender within a country.
  2. 2. EARLY MEDIUMS OF EXCHANGE: NON-MONETARY
  3. 3. BARTER SYSTEM The barter exchange system was when an individual possessing any surplus of value, such as a measure of grain or a quantity of livestock could directly exchange that for something perceived to have similar or greater value or utility, such as a clay pot or a tool. However, there was no agreed standard measure into which both seller and buyer could exchange commodities according to their relative value of all the various goods and services offered by other potential barter partners.
  4. 4. EARLY EMERGENCE OF MONEY  Grain and cattle were used as money or as barter.  In agricultural societies, things needed for efficient and comfortable employment of energies for the production of cereals and the like were the most easy to transfer to monetary significance for direct exchange.  As people's needs became more refined, so indirect exchange became more likely as the physical separation of skilled labourers (suppliers) from their prospective clients (demand) required the use of a medium common to all communities, to facilitate a wider market.
  5. 5. EARLY ADMINISTRATION  The Mesopotamian civilization developed a large scale economy based on commodity money, i.e. the barter system.  The Babylonians and their neighboring city states later developed the earliest system of economics as we think of it today, in terms of rules on debt, legal contracts and law codes relating to business practices and private property.
  6. 6. STAGES OF MONEY
  7. 7. CATTLE  An early type of money were cattle- both the animal and the manure produced were valuable.  Fines were paid in oxen and sheep.
  8. 8. COWRIE SHELLS The shells of cowries are usually smooth and shiny and more or less egg-shaped, with a flat under surface which shows a long, narrow, slit-like opening. Nearly all cowries have a porcelain-like shine and many have colourful patterns.
  9. 9. METALS Metals were favored for use as proto-money over commodities as cattle, cowry shells, or salt, because metals are at once durable, portable, and easily divisible.
  10. 10. COINS  The first manufactured coins seems to have taken place separately in India and China.  Minting occurred in parts of the Greek islands and the south of Italy.  The first stamped money (having the mark of some authority in the form of a picture or words) can be seen in the Bibliothèque Nationale of Paris.
  11. 11. BANK NOTES The banknotes were a form of representative money which could be converted into gold or silver by application at the bank. Until recently, these government-authorized currencies were forms of representative money, since they were partially backed by gold or silver and were theoretically convertible into gold or silver.
  12. 12. CURRENCY SYMBOLS A currency symbol is a graphic symbol used as a shorthand for a currency's name, especially in reference to amounts of money. They typically employ the first letter or character of the currency, sometimes with minor changes such as ligatures or overlaid vertical or horizontal bars

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