The History of MoneyMoney, in and o

The History of Money
Money, in and of itself, is nothing. It can be a shell, a metal coin, or a piece of paper with a historic image on it, but the value that people place on it has nothing to do with the physical value of the money. Money derives its value by being a medium of exchange, a unit of measurement and a storehouse for wealth. Money allows people to trade goods and services indirectly, understand the price of goods (prices written in dollar and cents correspond with an amount in your wallet) and gives us a way to save for larger purchases in the future.
Money is valuable merely because everyone knows everyone else will accept it as a form of payment - so let's take a look at where it has been, how it evolved and how it is used today.
A World Without Money
Money, in some form, has been part of human history for at least the last 3,000 years. Before that time, it is assumed that a system of bartering was likely used.
Bartering is a direct trade of goods and services - I'll give you a stone axe if you help me kill a mammoth - but such arrangements take time. You have to find someone who thinks an axe is a fair trade for having to face the 12-foot tusks on a beast that doesn't take kindly to being hunted. If that didn't work, you would have to alter the deal until someone agreed to the terms. One of the great achievements of money was increasing the speed at which business, whether mammoth slaying or monument building, could be done.
Slowly, a type of prehistoric currency involving easily traded goods like animal skins, salt and weapons developed over the centuries. These traded goods served as the medium of exchange even though the unit values were still negotiable. This system of barter and trade spread across the world, and it still survives today on some parts of the globe.
Oriental Cutlery
Sometime around 1,100 B.C., the Chinese moved from using actual tools and weapons as a medium of exchange to using miniature replicas of the same tools cast in bronze. Nobody wants to reach into their pocket and impale their hand on a sharp arrow so, over time, these tiny daggers, spades and hoes were abandoned for the less prickly shape of a circle, which became some of the first coins. Although China was the first country to use recognizable coins, the first minted coins were created not too far away in Lydia (now western Turkey).
Coins and Currency
In 600 B.C., Lydia's King Alyattes minted the first official currency. The coins were made from electrum, a mixture of silver and gold that occurs naturally, and stamped with pictures that acted as denominations. In the streets of Sardis, circa 600 B.C., a clay jar might cost you two owls and a snake. Lydia's currency helped the country increase both its internal and external trade, making it one of the richest empires in Asia Minor. It is interesting that when someone says, "as rich as Croesus", they are referring to the last Lydian king who minted the first gold coin. Unfortunately, minting the first coins and developing a strong trading economy couldn't protect Lydia from the swords of the Persian army.
Not Just a Piece of Paper
Just when it looked like Lydia was taking the lead in currency developments, in 600 B.C., the Chinese moved from coins to paper money. By the time Marco Polo visited in 1,200 A.D., the emperor had a good handle on both money supply and various denominations. In the place of where the American bills say, "In God We Trust," the Chinese inscription warned, "All counterfeiters will be decapitated."
Europeans were still using coins all the way up to 1,600, helped along by acquisitions of precious metals from colonies to keep minting more and more cash. Eventually, the banks started using bank notes for depositors and borrowers to carry around instead of coins. These notes could be taken to the bank at any time and exchanged for their face values in silver or gold coins. This paper money could be used to buy goods and operated much like currency today, but it was issued by banks and private institutions, not the government, which is now responsible for issuing currency in most countries.
The first paper currency issued by European governments was actually issued by colonial governments in North America. Because shipments between Europe and the colonies took so long, the colonists often ran out of cash as operations expanded. Instead of going back to a barter system, the colonial governments used IOUs that traded as a currency. The first instance was in Canada, then a French colony. In 1685, soldiers were issued playing cards denominated and signed by the governor to use as cash instead of coins from France.
Money Travels
The shift to paper money in Europe increased the amount of international trade that could occur. Banks and the ruling classes started buying currencies from other nations and created the first currency market. The stability of a particular monarchy or government affected the value of the country's currency and the ability for that country to trade on an increasingly international market. The competition between countries often led to currency wars, where competing countries would try to affect the value of the competitor's currency by driving it up and making the enemy's goods too expensive, by driving it down and reducing the enemy's buying power (and ability to pay for a war), or by eliminating the currency completely.
Despite many advances, money still has a very real and permanent effect on how we do business today.
Functions of Central Bank
Central bank is an important organization for any country. It performs traditional and developmental role to accomplish macro-economic objectives. This includes currency issuance, regulation of liquidity, supervision of banks and secondary markets, exchange rate management, balance of payment, establishment and development of financial institutions.
Central bank is the center of banking system of any country and has sole authority to control and regulate the supply of money. Central bank controls the supply of money by keeping the welfare of people in mind as primary object. Functions of central bank are discussed in detail below.
Monopoly over Issuing Currency
The primary function of central banks is to issue money in the country. Central bank issue currency notes by following certain regulations enforced by the state. There are different requirements which central bank need to fulfill for this purpose, one important prerequisite is keeping reserve against issued money. Some important advantages for this sole authority are:
– Credit creation by commercial banks can be checked and controlled by central bank.
– Central Bank has the confidence of people as it has the government backing and recognition.
– As the sole authority of issuing currency there is uniformity in the country’s currency.
– Government can use this sole authority for the best interest of people.
Government Agent and Advisor
It acts as the government bank and agent, to collect and pay transactions on behalf of the government. Central bank has a detail record of all monetary issues and present in good position to advise government for monetary, banking and financial issues.
Bankers Bank
It is the bank for all commercial banks and monitor and control all commercial banks by its regulations. Commercial banks keep reserves with central bank as a requirement. Central bank also helps commercial banks in their daily business life by providing loans, security to cash reserves and gives them advice on financial and economic issues.
Clearing House
Another important function central bank does for commercial banks is acting as a clearing house for settle all the bill and checks drawn one another.
Lender of the Last Resort
Central bank helps commercial banks when they face any crisis, central bank come to rescue by advancing loans and bailout packages.
Credit Control
Credit Control becomes an emerging vital function of Central Banks. Although monitoring and controlling credit been always a function of central banks but as the technology grew and use of plastic and e-transaction is becoming more common there are many sensitive monetary issues arises. Central Banks take quantitative and qualitative methods for credit control such as bank rate, open market operation and moral situations etc.
Financial Agent
Central bank works as government agent for foreign exchange and gold transactions.
Collection of Data
Data collection is a silent function of Central Bank, there are professional appointed arrange the statistics for different reports related to money, credit, foreign exchange etc.
Monopoly power over money
Central banks have a huge influence over the financial system. Every word of the world's central bankers is scrutinized and their pronouncements are pored over by throngs of well-paid financial analysts.
These days, central bankers seem all-powerful. In most rich countries they go about their business without interference from politicians. And their success at using their new-found independence to bring down inflation has earned them great respect.
Central banks matter to the financial system for two main reasons. First, they set short-term interest rates. These affect the cost of borrowing throughout the economy, from money markets to mortgage rates, and they have an additional influence through their impact on exchange rates, inflation and growth. Second, central banks generally support (and often regulate) the banking system, notably by acting as a lender of last resort to banks in financial distress.
For all central banks' importance, they remain tiny participants in huge financial markets. So how do they affect prices, ie, interest rates, in those markets? Consider America. Its fixed-income market (government and private) is worth some $13.6 trillion. Every day hundreds of billions of dollars of these securities change hands, and it is not unusual for a single private firm to buy or sell more than $1 billion in

Результаты (русский) 1:

История денегДеньги, само по себе, это ничего. Это может быть корпуса, металлические монеты или кусок бумаги с изображением исторических на нем, но значение, которое люди место на него имеет ничего общего с физической стоимости денег. Деньги получает свое значение, будучи средством обмена, единица измерения и склад для богатства. Деньги позволяет людям косвенно торговли товарами и услугами, понять цену товара (цены в долларах и центах соответствуют с суммой в вашем бумажнике) и дает нам возможность сохранить для крупных покупок в будущем.Деньги это ценный, просто потому, что каждый знает, что все остальное будет принимать его в качестве формы оплаты - так что давайте взглянем на где он был, как она развивалась и как она используется и сегодня. Мир без денегДеньги, в той или иной форме, был частью человеческой истории, по крайней мере последние 3000 лет. До этого времени предполагается, что скорее всего использовалась система бартера.Бартер это прямой торговли товаров и услуг, - я дам вам каменный топор, если вы поможете мне убить мамонта - но таких механизмов занять время. Вы должны найти, что кто-то думает, что топор справедливой торговли для того, чтобы решать 12-футовый бивни на зверя, который не принимают любезно к охотятся. Если это не работает, вам придется изменить дело до тех пор, пока кто-то согласится с условиями. Одним из величайших достижений денег увеличивается скорость на которой бизнес, ли мамонт убийство или здание, памятник может быть сделано.Медленно тип доисторических валюты с участием легко товары как шкуры животных, соль и разработки оружия на протяжении веков. Эти товары, служил в качестве средства обмена, несмотря на то, что значения единиц были по-прежнему оборотные. Эта система бартера и торговля распространилась по всему миру, и он все еще жив сегодня в некоторых частях земного шара.Восточные столовые приборыТо около 1100 до н.э., китайский переехала из использование реальных инструментов и оружия как средства обмена с использованием миниатюрных реплики же инструментов, отлитых в бронзе. Никто не хочет достичь в их карман и сажать их руку на острые стрелки так, со временем, эти крошечные кинжалы, пики и мотыги были покинуты для менее колючие форму круга, которые стали некоторые из первых монет. Хотя Китай является первой страной для использования узнаваемые монеты, первый чеканились монеты были созданы не слишком далеко в Лидии (сейчас Западная Турция).Монет и валютыВ 600 до н.э. царь Лидии Alyattes чеканились первой официальной валютой. Монеты были сделаны из Электрум, смесь из серебра и золота, что происходит естественно, и штамп с фотографиями, которые выступали в качестве конфессий. На улицах Сарды, около 600 до н.э. глины сосуд может стоить вам две совы и змея. Лидия валюты помогли стране увеличение обоих его внутренней и внешней торговли, что делает его одним из самых богатых империй в Малой Азии. Интересно, что когда кто-то говорит, «так богат, как Крез», они имеют в виду последний лидийского царя, который чеканил первая Золотая монета. К сожалению чеканку первых монет и разработки сильной торговой экономики не мог защитить Лидия от мечей персидской армии. Не просто кусок бумагиПросто, когда он посмотрел, как Лидия играет ведущую роль в изменения валюты, в 600 до н.э., китайский переехала из монеты бумажные деньги. К тому времени, посещенных Марко Поло в 1200 а.д. Император имел хорошую ручку на денежной массы и различных конфессий. Месте где американских счетов говорят, «Мы верим в Бога,» китайский надпись предупредил «все подделок будет быть обезглавлен.»Европейцы по-прежнему используют монеты все, вплоть до 1600, помогла вдоль приобретение драгоценных металлов из колоний для держать монеты все больше и больше наличных средств. В конце концов банки начали использовать банкноты для вкладчиков и заемщиков носить вместо монет. Эти заметки можно было принято в банк в любое время и обменять их номиналы в серебряные или золотые монеты. Это бумажные деньги могут быть использованы для покупки товаров и работает так же, как валюты сегодня, но он был выпущен банками и частными учреждениями, не правительство, которое в настоящее время отвечает за выдачу валюты в большинстве стран.Первые бумажные деньги, выданные правительствами европейских стран фактически был выдан колониальных правительств в Северной Америке. Потому что так долго грузов между Европой и колоний, колонисты часто кончились наличные операции расширены. Вместо того, чтобы вернуться к бартерной системе, колониальных правительств использоваться долговые расписки, которые торгуются как валюта. Первый экземпляр был в Канаде, затем французской колонией. В 1685 году солдаты были выпущены игральных карт выражены и подписан губернатором для использования в качестве наличными вместо монет из Франции.Путешествия деньгиThe shift to paper money in Europe increased the amount of international trade that could occur. Banks and the ruling classes started buying currencies from other nations and created the first currency market. The stability of a particular monarchy or government affected the value of the country's currency and the ability for that country to trade on an increasingly international market. The competition between countries often led to currency wars, where competing countries would try to affect the value of the competitor's currency by driving it up and making the enemy's goods too expensive, by driving it down and reducing the enemy's buying power (and ability to pay for a war), or by eliminating the currency completely.Despite many advances, money still has a very real and permanent effect on how we do business today.Functions of Central BankCentral bank is an important organization for any country. It performs traditional and developmental role to accomplish macro-economic objectives. This includes currency issuance, regulation of liquidity, supervision of banks and secondary markets, exchange rate management, balance of payment, establishment and development of financial institutions.Central bank is the center of banking system of any country and has sole authority to control and regulate the supply of money. Central bank controls the supply of money by keeping the welfare of people in mind as primary object. Functions of central bank are discussed in detail below.Monopoly over Issuing Currency The primary function of central banks is to issue money in the country. Central bank issue currency notes by following certain regulations enforced by the state. There are different requirements which central bank need to fulfill for this purpose, one important prerequisite is keeping reserve against issued money. Some important advantages for this sole authority are:– Credit creation by commercial banks can be checked and controlled by central bank.– Central Bank has the confidence of people as it has the government backing and recognition.– As the sole authority of issuing currency there is uniformity in the country’s currency.– Government can use this sole authority for the best interest of people.Government Agent and AdvisorIt acts as the government bank and agent, to collect and pay transactions on behalf of the government. Central bank has a detail record of all monetary issues and present in good position to advise government for monetary, banking and financial issues.Bankers BankIt is the bank for all commercial banks and monitor and control all commercial banks by its regulations. Commercial banks keep reserves with central bank as a requirement. Central bank also helps commercial banks in their daily business life by providing loans, security to cash reserves and gives them advice on financial and economic issues.Clearing HouseAnother important function central bank does for commercial banks is acting as a clearing house for settle all the bill and checks drawn one another.Lender of the Last ResortCentral bank helps commercial banks when they face any crisis, central bank come to rescue by advancing loans and bailout packages.Credit ControlCredit Control becomes an emerging vital function of Central Banks. Although monitoring and controlling credit been always a function of central banks but as the technology grew and use of plastic and e-transaction is becoming more common there are many sensitive monetary issues arises. Central Banks take quantitative and qualitative methods for credit control such as bank rate, open market operation and moral situations etc.Financial AgentCentral bank works as government agent for foreign exchange and gold transactions.Collection of DataData collection is a silent function of Central Bank, there are professional appointed arrange the statistics for different reports related to money, credit, foreign exchange etc.Monopoly power over moneyCentral banks have a huge influence over the financial system. Every word of the world's central bankers is scrutinized and their pronouncements are pored over by throngs of well-paid financial analysts.These days, central bankers seem all-powerful. In most rich countries they go about their business without interference from politicians. And their success at using their new-found independence to bring down inflation has earned them great respect.Central banks matter to the financial system for two main reasons. First, they set short-term interest rates. These affect the cost of borrowing throughout the economy, from money markets to mortgage rates, and they have an additional influence through their impact on exchange rates, inflation and growth. Second, central banks generally support (and often regulate) the banking system, notably by acting as a lender of last resort to banks in financial distress.For all central banks' importance, they remain tiny participants in huge financial markets. So how do they affect prices, ie, interest rates, in those markets? Consider America. Its fixed-income market (government and private) is worth some $13.6 trillion. Every day hundreds of billions of dollars of these securities change hands, and it is not unusual for a single private firm to buy or sell more than $1 billion in

Результаты (русский) 3:

история деньги
деньги сами по себе ничто.она может стать Shell, металлической монеты, или кусок бумаги с историческим на нем изображение, но ценность, что люди на это не имеет ничего общего с физической стоимость денег.деньги получает свою ценность как средство обмена, единицы измерения и хранилищем богатства.деньги дает людям возможность торговли товарами и услугами, косвеннопонять цену товара (цены в письменном виде в доллар и центов соответствуют сумму в бумажнике) и дает нам возможность спасти для крупных покупок в будущем.
деньги ценна только потому, что каждый знает, все еще будет принять его в качестве оплаты - так давай посмотри, где он был как она изменилась, и как она используется и сегодня."мир без денег: деньги, в той или иной форме,является частью человеческой истории, по крайней мере, в течение последних трех тысяч лет.до этого времени, предполагается, что система будет использовать бартер.
бартер, является прямой торговли товарами и услугами, я дам тебе каменный топор, если ты поможешь мне убить мамонта - но таких договоренностей займет время.