BADILAS ALEXANDRA & ALEXIU EDUARD, 8217

1. Students
BĂDILAȘ ALEXANDRA
ALEXIU EDUARD
GROUP 8217
Acknowledgements
COORDINATING
TEACHER MIHAI
FRUMUȘELU
University of Agriculture and Veterinary Medicine
FACULTY OF MANAGEMENT, ECONOMIC ENGINEERING IN AGRICULTURE AND RURAL
DEVELOPMENT
SPECIALTY: Engineering and Management in Public Food and AGROTURISM
Bucharest, Romania
History of money and
banking
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2. WHAT IS MONEY?
Money, is nothing.
It can be a shell, a metal coin, or a piece of paper with a historic image on
it, but the value that people place on it has nothing to do with the physical
value of the money.
Money allows people to trade goods and services indirectly, understand the
price of.
Money is valuable merely because everyone knows everyone else will
accept it as a form of payment - so let's take a look at where it has been,
how it evolved and how it is used today.
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3. A WORLD WITHOUT MONEY
BARTERING
is a direct trade of goods and services. A type of prehistoric currency involving
easily traded goods like animal skins, salt and weapons developed over the
centuries. These traded goods served as the medium of exchange even though
the unit values were still negotiable. This system of barter and trade spread
across the world, and it still survives today on some parts of the globe.
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4. FUNCTIONS OF MONEY
• Unit of account
• Common measure of value
• Means of payment
• Store of value (concrete)
• Controller of the economy
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5. COINS AND CURRENCY
Lydia's King minted the first official currency. The coins were made from a
mixture of silver and were stamped with pictures that acted as denominations. In
the streets of Sardis B.C., a clay jar might cost you two owls and a snake.
Lydia's currency helped the country increase internal and external trade,
making it one of the richest empires.
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6. NOT JUST A PIECE OF PAPER
Just when it looked like Lydia was taking the lead
in currency developments, the Chinese moved
from coins to paper money.
Eventually, the banks started using bank notes for depositors and borrowers
to carry around instead of coins. These notes could be taken to the bank at
any time and exchanged for their face values in silver or gold coins.
This paper money could be used to buy goods and operated much like
currency today.
The shift to paper money in Europe increased the amount of international
trade. 6

7. KEYWORDS:
• Currency
• Exchange
• Paper money
• Trade
• Payment
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8. Despite many advances, money still has a
very real and permanent effect on how we do
business today.
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9. BIBLIOGRAPHY
http://projects.exeter.ac.uk/RDavies/arian/origin
s.html
http://www.investopedia.com/articles/07/roots_
of_money.asp
http://library.uniteddiversity.coop/Money_and_Ec
onomics/A_History_of_Money-
From_Ancient_Times_to_the_Present_Day.pdf
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