History of money

1. HISTORY OF MONEY AND BANKING
UNIVERSITY OF AGRONOMIC SCIENCES AND VETERINARY MEDICINE
STUDENTS NAME:Munteanu Raluca,Daescu Cristina Elena
SPECIALIZATION:MANAGEMENT GROUP:8203
The invention of money took place before the beginning of written history. Consequently any story of how
money first developed is largely based on conjecture and logical inference. The earliest ideas included Aristotel's
"metallist" and Plato's "cartalist" concepts. In the past, people usually had to travel all day to find the person
who is willing to exchange their goods. In addition, the goods people want to exchange did not have the
standard value of measurement. This led to unequal exchanges. To solve these issues, money will be the only
solution.
Gold and silver have been the most common forms of money throughout history. Gold coins began to be
minted again in Europe in the 13th century. Frederick II is credited with having reintroduced gold coins during
the Crusades During the 14th century Europe changed from use of silver in currency to minting of gold.
Paper money was introduced in Song Dynasty China during the 11th century..The development of the
banknote began in the seventh century, with local issues of paper currency. Its roots were in
merchant receiptsof deposit during the Tang Dynasty (618–907), as merchants and wholesalers desired to avoid
the heavy bulk of copper coinagein large commercial transactions
Goldsmiths in England had been craftsmen, bullion merchants, money changers, and money lenders since the
16th century.Merchants and traders had amassed huge hoards of gold and entrusted their wealth to the Royal
Mint for storage.
The history of banking began with the first prototype banks which were the merchants of the world, who
made grain loans to farmers and traders who carried goods between cities. This was around 2000 BC in Assyria,
India and Sumeria.
The first bank was established in Venice with guarantee from the State in 1157.According to Macardy this
was due to the commercial agency of the Venetians, acting in the interest of the Crusaders of Pope Urban the
Second. In the 18th century, services offered by banks increased. During the post second world war period and
with the introduction of the Bretton Woods system in 1944, two organizations were created: the International
Monetary Fund (IMF) and the World Bank.
Large corporate players were beginning to find their way into the financial service community, offering