Evolucion del dinero

MONEY EVOLUTION

Due to inconveniences of barter system, the need for introducing something as a medium of exchange arise. The development of money has passed through various stages in accordancewith time, place and circumstances with the progress of civilization of mankind.

The different types of money are explained in brief as follows:-
Animal Money:
In the hunting stage, animals wereused as money. Various cattle like cows, goats etc. were used as money. This money has certain drawbacks like indivisibility, lack of storability, lack of portability and lack of standardization.Commodity Money:
Various commodities like shells, skins, rice, tea etc were used as money in some places. People living near sea shore used shells, fish etc as a medium of exchange. This money hascertain limitations like lack of uniformity, portability, indivisibility etc.

Metallic Money:
Metals like gold, silver, copper, bronze were used as money. It lacks uniformity, portability anddifficult to count small pieces of coins for big transactions.

Metallic Coins:
In order to overcome the difficulties of metallic money, coins were introduced in 700 B.C in Greece. Coins bearing theking's stamp were used. It also had certain disadvantages like lack of transferability, unsafe to carry, difficulty of counting and lack of availability of coins etc.

Paper Money:
AfterIndustrial Revolution, paper money was invented. Paper money emerged as token money. Paper notes were issued by the Government. It was economical and portable compared to metallic money. It has certainlimitations like lack of durability, difficulty in handling big amounts, could not be used for international trade etc.

Bank Money:
To supplement paper money a new type of money known as bank money orcredit money was created by banks. It is in the form of checks, drafts, bills of exchange. It is accepted as legal tender money. It is safe and convenient and is used in the present economy for all...