EVOLUTION OF MONEY
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EVOLUTION OF MONEY OBJECTIVES 1.Facilitate exchange of goods and services in the absence of a standardized medium of exchange. 2.Use universally accepted goods as a medium of exchange and store of value. 3.Introduce standardized coins made from precious metals to ensure uniformity in trade. 4.Replace heavy and scarce metals with lightweight, portable currency backed by reserves of precious metals (initially). 5.Increase efficiency and accessibility of transactions through electronic systems. MIND MAP DEFINITION OF MONEY Economists identify more than one kind of money. In this lesson, "money" refers specifically to the money of exchange, i.e., money as a symbol of value and as part of a system of payment. This form of money is traditionally a physical object that one provides in exchange for goods or services. FUNCTIONS OF MONEY There are many static and dynamic functions of money as follows: Static Functions of Money A medium of Exchange – In a...