interesting things of currency
about indian coins and currency notes video
about world currency video
interesting facts about money
Barter system
In very early ages people used grains and cattle as money. Goods are directly exchanged for each other without the use of money is called the barter system. But these were difficult to transport and stock.
Ragavaiah has some Rice, but he want onions. So he goes to Venkataiah who grows onions. Venkataiah wants rice, and he willing to exchange onions for rice. So the two exchange their goods, and both are satisfied. They were holding of commodities like goats, or bags of rice require a lot of space and they used carts and trucks to carry their goods for exchange to the market. Ramaiah has a goat, and wants to buy a match box . Is it a fair exchange for him? He cannot give a part of the goat for a match box, because the goat is not divisible, that commodities like vegetables should be exchanged immediately, because they are perishable. People all over the world practiced barter and also encountered the problems with this system. When trading became more widespread, more goods were bought and sold. They were also transported over long distances. In such circumstances use of some form of money evolved in all societies. Over time, people preferred scared and attractive metals as medium of exchange. Gold, silver, copper and bronze are durable can be divided into piece of flat metal and be carried anywhere. Since they were scare they became accepted by all. People could buy and sell with the assurance that money they had in hand would be valuable and sought by others. They did not have to worry that their money might lose value as could happen with grains or cattle. However, some new problems rose for every exchange the metal had to be weighed and later on traders were not sure about the quality of the metal. What one might get in exchange may not be pure gold or silver. After some time there was a serious problem of trust in the quality of metal that was used as money for exchange. This provided an opportunity for various rulers of the kingdoms to come up with a system that was suitable for them and also solved the above problems. This led to minting coins of standard size, weight, and purity from the royal mint. ‘’besant” a gold coin was the standard currency in the period of roman. And in the period of mauryan “pana” a silver coin was standard currency. Coins became the acceptable form of money by traders and people.
Now a days we can use money can buy small items also like match box. Money is divisible there are rupees and paise. Money is durable, and it can be kept for future use. However money does not require much space to keep, it can carried about anywhere in a pocket.
History
of Paper money and emergence of banks.
People, who had to buy and sell in large quantities, had to carry large amounts of gold or silver coins for their transactions. So they started looking for safe places to keep them. They went to goldsmiths, where their money would be protected. The goldsmiths charged fees for keeping their valuables safe and making them available whenever they wanted. This practice became popular and the trust in some of the goldsmiths or shroffs grew. These goldsmiths would also give loans and had branches in many cities leading to a new system of paper money or hundis.
Example raga is a cloth merchant of Mumbai he has to go Delhi to buy machinery from Gopal. It is dangerous to carry gold coins for payment all the way to Delhi. So merchant keeps his ten gold coins, with a goldsmith, and takes a receipt issued in his name. the receipt would say “I promise to pay 5 gold coins” now raga buys the machines from Gopal. He gives the goldsmith’ receipt to Gopal and tells him to collect the 5 gold coins from the goldsmith as payment. Gopal knows that he can go anytime to collect the 5 gold coins from the goldsmith who has an office at Delhi also.
He does not go to collect the money but instead he goes to Ravi who sells iron and steel, and gives him Ranga receipt for 5 gold coins in exchange for steel. He tells Ravi that he can collect the gold from that same goldsmith. Ranga’s original receipts have now circulated in the economy, and is being transferred from one person to another and all accept this as a means of payment. Because of the trust created, such receipts began to work as new form of money.
Plastic bank notes or polymer bank note
Paper money also has its defects. It will tear and get spoil some days after due dust. so their is an idea of using plastic material for notes. Polymer currency is easy to handle, more last long and other important thing is forgery can be easily detected. It is water proof and eco friendly and easily recycling. From metal to paper and now probably paper to plastic. In India reserve bank of India is responsible for printing, minting coins and circulating the money.
property for sale chandanagar hyderabad
2011 All rights reserved .without any prior permission of author no part of this site copying or reproduced illegal.
The matter in this site is for educational purpose only.
People, who had to buy and sell in large quantities, had to carry large amounts of gold or silver coins for their transactions. So they started looking for safe places to keep them. They went to goldsmiths, where their money would be protected. The goldsmiths charged fees for keeping their valuables safe and making them available whenever they wanted. This practice became popular and the trust in some of the goldsmiths or shroffs grew. These goldsmiths would also give loans and had branches in many cities leading to a new system of paper money or hundis.
Example raga is a cloth merchant of Mumbai he has to go Delhi to buy machinery from Gopal. It is dangerous to carry gold coins for payment all the way to Delhi. So merchant keeps his ten gold coins, with a goldsmith, and takes a receipt issued in his name. the receipt would say “I promise to pay 5 gold coins” now raga buys the machines from Gopal. He gives the goldsmith’ receipt to Gopal and tells him to collect the 5 gold coins from the goldsmith as payment. Gopal knows that he can go anytime to collect the 5 gold coins from the goldsmith who has an office at Delhi also.
He does not go to collect the money but instead he goes to Ravi who sells iron and steel, and gives him Ranga receipt for 5 gold coins in exchange for steel. He tells Ravi that he can collect the gold from that same goldsmith. Ranga’s original receipts have now circulated in the economy, and is being transferred from one person to another and all accept this as a means of payment. Because of the trust created, such receipts began to work as new form of money.
Plastic bank notes or polymer bank note
Paper money also has its defects. It will tear and get spoil some days after due dust. so their is an idea of using plastic material for notes. Polymer currency is easy to handle, more last long and other important thing is forgery can be easily detected. It is water proof and eco friendly and easily recycling. From metal to paper and now probably paper to plastic. In India reserve bank of India is responsible for printing, minting coins and circulating the money.
property for sale chandanagar hyderabad
2011 All rights reserved .without any prior permission of author no part of this site copying or reproduced illegal.
The matter in this site is for educational purpose only.