Money of the world

Simply money

Forms of money

New American money

Old money of Britain

Price of money

Children's money

Another's money

Simple money

Money in the sleep

Dirty money

Money power

Colour of money

Mint money

Personal money

Dear money

Automatic machines on money

Before appearance of money as a medium of exchange, people used simple barter for reception of the goods and services which were necessary for them.

However, the early form of barter, does not provide transfer and divisibility possibility that did trade of the inefficient. For example, if you have cows, but you require bananas, you should find the person who not only has bananas, but also wishes to acquire meat. What to do, if you find the person who needs meat, but has no bananas, and can offer you only rabbits? To receive simple meat, this person should find other person who will take rabbits instead of the bananas etc. Absence of possibility of an exchange for the necessary goods as you can see, very much tyres, does trade confused and inefficient.

the Skin of the beaver
For the decision of these problems commodity money which have presented some kind of the currency based on cost of a basis commodity have acted. For example, colonizers used skins of the beaver and a simple corncob as money for bargains. These kinds of the goods have been chosen for some reasons. They were in great demand, were valuable, and also were easily stored, remaining strong and mobile.

As Other example of commodity money the American currency till 1971 which has been supplied by gold acts. The foreign governments were able interchange the American currency for gold at the Federal Reserve System of the USA. If we reflect on relations between money and gold, we get some idea how simple money declares the value: as skins of the beaver and dry grain, gold is valuable only because people want it. It is not certainly useful - in long run, you cannot eat it, and it will not warm you at cold night, but the majority of people think that gold beautiful and rare metal.

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