This presentation focuses on the evolution of the currency. It shows how we came this far in terms of exchanging ( money ). This presentation presents the journey from the barter system to electronic money. Topics are explained with pictures for better understanding.

3. CURRENCY
Currency is a generally accepted form of
money, including coins and paper notes,
which is issued by a government and
circulated within an economy. Used as a
medium of exchange for goods and
services, currency is the basis for trade.

4. EVOLUTION OF CURRENCY
• The word currency is derived from middle
English ‘currant’ which means in
circulation .
• Hunting society , skin of wild animals were
used as mode of trade.
• Pastoral society used livestock.
• Agricultural society used grains and foods.
• The Roman used cattle and salt.

6. BARTER
•The exchange of
merchandise for
merchandise,
without value
equivalence.
•Bartering was
recorded in Egypt.

7. BARTER SYSTEM

8. DRAWBACKS OF BARTER
SYSTEM
• Double Coincidence of Wants
• Absence of Common Measure of Value
• Lack of Divisibility
• The Problem of Storing Wealth
• Difficulty of Deferred Payments
• Problem of Transportation

9. COMMODITY MONEY
• Commodity
money is money whose
value comes from
a commodity of which
it is made.
• Commodity
money consists of
objects that have value
in themselves (intrinsic
value) as well as value
in their use as money.

11. DRAWBACKS OF COMMODITY
MONEY
• Indivisibility, perishability, tendency to
fluctuate erratically and variations in
quality .
• It may vary in quality. Due to variations
in quality, lower-quality commodities
tend to drive higher-quality commodities
out of circulation.

12. METAL • As soon as man discovered
metal, it was used to made
utensils and weapons
previously made of stone.
• The possibility of treasuring,
divisibility, easy of
transportation and beauty,
metal became the main
standard of value.
• At the beginning, metal was
used in its natural state, and
later under the form of
ingots and, still, transformed
into objects, from rings to
bracelets.

13. DRAWBACKS OF METAL
• Metal items came to be very valued
commodities.
• As its production required, in addition to
knowledge of melting, knowing where the
metal could be found in nature, the task
was not at the reach of everyone.

14. MONEY IN THE FORM OF
OBJECTS
• The increased value
of these objects led
to its use as money
and the circulation
as money of small-
scale replicas of
metal objects.

15. • This is the case of
the knife and key
coins found in the
East and the
talent, a copper or
bronze coin with
the form of an
animal skin that
circulated in
Greece and
Cyprus.

16. ANCIENT COINS
• In the 7th century B.C.
the first coins
resembling current
ones appeared:
• They were small metal
pieces, with fixed
weight and value, and
bearing an official seal,
that is the mark of who
has minted them and
also a guaranty of their
value.

17. • At the beginning,
coin pieces were
made by hand in a
very coarse way, had
irregular edges, and
were not absolutely
equal to one another
as today’s ones.

18. GOLD, SILVER AND COPPER
• The first metals used
in coinage were gold
and silver.
• Employment of these
metals happened for
their rarity, beauty,
immunity to
corrosion, economic
value, and for old
religious habits.

19. • Countries minted their
most highly valued
coins in gold, using
silver and copper for
lesser value coins.
• Large quantities of
modern alloys
appeared, produced to
support the high
circulation of change
money.

20. PAPER MONEY
• In the Middle Ages, the
keeping of values with
goldsmiths, persons trading
with gold and silver items,
was common.
• The goldsmith, as a guaranty,
delivered a receipt.
• With time, these receipts
came to be used to make
payments, circulating from
hand to hand, giving origin to
paper money.

21. • In Brazil, the first bank
notes, precursors of the
current notes, were
issued by Banco do
Brasil in 1810.
• Paper money
experienced an
evolution regarding the
technique used in their
printing.
• Assured great margin of
security and durability.

22. DIFFERENT SHAPES
• Money has greatly
changed its physical
aspect along the
centuries.
• Bank notes were
generally of rectangular
lengthwise format,
although with great
variety of sizes.
• Bank notes depict the
culture of the issuing
country.

23. • Bank notes bear, in
addition, inscriptions,
generally in the country’s
official language,
although several also
bear the same
inscriptions in other
idioms.
• The inscriptions,
frequently in English, aim
at permitting the piece to
be read by a larger
number of people.

24. MONETARY SYSTEMS
• The set of coins and
bank notes used by a
country form its
monetary system.
• The system is
regulated by
appropriate
legislation and
organized from a
monetary unit, its
base value.

25. • The countries, through
their central banks,
control and guarantee
the issue of money.
• The set of notes and
coins in circulation, the
so called monetary
mass, is constantly
renewed through the
process of sanitation,
substitution of worn out
and torn notes

26. CHECKS
• This document, by
which one orders
payment of a certain
amount to its bearer
or to a person
mentioned in it, aims
mainly at
transactions with
bank deposits.

27. ELECTRONIC MONEY
• Refers to money or
scrip which is
exchanged only
electronically.
• Typically, this
involves use of
computer networks,
the internet and
digital stored value
systems.

28. CHARACTERISTICS OF MONEY
• General acceptability
• Stability of value
• Transportability
• Storability
• Divisibility

29. THE END
&
THANK YOU

30. NAME – DEEKSHA SHARMA
BRANCH – B.TECH CSE
SEMESTER – IV