2. 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.
4. 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.
5.
6. 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.
7. 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.
9. CATTLE
An early type of money were
cattle- both the animal and the
manure produced were valuable.
Fines were paid in oxen and
sheep.
10. 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.
11. 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.
12. 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.
13. 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.
14. 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
