when did people first use money ?

3] When did people first use money ?

 Money has always fascinated man ever

Since ancient times. Money has come to

become the most important thing in the

World. Aristotle observed that man is a social

being who establishes certain norms and

regulations for his social interaction. Man

employed money as a mode of exchange

to facilitate such social dealings for hiseconomical aspect.In primitive societies, when people

wanted to buy anything, they had to give

something else in return for it. For example,

if a potter wanted to buy rice from a farmer,

he offered him earthenware in exchange

for rice.

The farmer would accept them

because he needed pots. This was called

the barter system, which involved goods inexchange of goods.During those times goods served thepurpose of money. But with thedevelopment of trade, the barter system

could not meet the growing demands of a

convenient exchange system for buying andselling. People started using token orholic goods in exchange all o

orld, American Indlans used beads of

Fijians usedthe

whale's teeth and NortkAmericans used tobacco in their exchanon

system. The Roman army men werengeided salt for their servVices. But whe

was the coin first used as currencveThe precise origin of money in the f

of coins is not clearly knoOwn. Accordinam

to

the available sources, the earliest coins werminted in about 800 B.C. when Indians whlived in Asia used stamped pieces of metalas a medium of exchange. Some believe

that the Chinese used cOins even earlierCoins were preterred because they weroeasy-to-carry and durable.The early coins were of irregular shape

and were stamped with rough designs. The

money value ot coins depended on thevalue of the metal that the cOins were made

of. Coins were mostly made of gold, silveror copper because they were precious anddurable metals.The use of paper currency was known

to China as early as in the 9th century butit did not develop in Europe until the

17th century. The governments of different

Countries favoured the use of paper

currencies and coins to simplity the

monetary dealings. It helped, because what

mattered was the money value printed or

stamped on them and not their real value.

This is because the printed value on the

currencies denoted their purchasing power

as assured by the government. People

accept a coin or currency in payment not

because they value the coin itself but

because they have contidence in the

authority that issued it.As coins are heavy and bulky, larger

payments are made in paper money issued

by the proper legal authority.