The economic essence of money - Реферат

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History of money and barter. Medium for exchange. The first coins. The first European currencies. Single currencies in history. 20th century currencies in Europe, economic characteristics. Medium of exchange, unit of account, commodity money, liquidity.

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CHAPTER 1. INTRODUCTION Money has not always come from cash machines at banks. It has a long history and has developed over thousands of years. As our society has developed, so our need for more sophisticated types of money has developed in parallel, as is described here. The history of money shows us that it is a medium of exchange for trade. It can be a medium of exchange because it has a clear value that is trusted by everyone. Money is also a way to store value for the future. Finally, money is also a unit of account. It can be counted easily and it enables a clear value to be given to goods. Until recent times, money was based solely on coins. This was because a coin contained a precise weight of a metal, such as gold or silver, that had a known value. This type of money is known as specie money and its value is guaranteed by the precious metal it contains. As trade increased, more and more money was needed as a medium of exchange. Therefore, banks and governments began issuing banknotes.Banknotes do not

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