money
Money is defined as everyone who obtains general acceptance when carrying out any trading transaction, and this is through its acceptance by all individuals living in society, and it is used as a means of exchange for goods and services and a measure of value, and it is an essential part of the economic and social process alike.
Types of money
Money is divided into many types, namely:
- Commodity money: The first type of money known to man and dealing with it, and it was the only means used for the process of trading in human societies, and it has many different forms such as cattle, leather, ivory, wheat and other commodities.
- Metal money: This money appeared when many people faced great difficulty in dealing with commodity money, and this type of money is a qualitative transition and a major development in life, and this stage was called the stage of metal money, and the first beginnings were limited to dealing with different metals such as copper, zinc and iron And other metals, but in the advanced stages were replaced by precious metals such as gold and silver.
- Paper money: This money was used instead of metal money, and it appeared as a result of the development of the banking and exchange system, in addition to the large spread of commercial banks, and it was called the representative paper money.
- Written money: This stage is one of the most advanced stages in the use of money. It is used in commercial banks in the form of book entries, and gives its holder the right to withdraw cash when needed, and it is done through check books.
The importance of money and its functions
The need for money as a means for the exchange process arose due to the difficulty of dealing with the barter system that was prevalent since ancient times, in addition to the large increase in needs resulting from the great developments taking place in societies. Money performs many functions, which are as follows:
Read also:What is the currency of singapore- Its basic functions: It includes many things such as making it an important medium for exchanges, in addition to being a common measure of value.
- Secondary functions: It is used as a store of value, and this means that a person can save and store money for any period of time he wants, and spend it at the appropriate time for him, without being damaged or corrupted, unlike storing goods that are subject to damage with the passage of time, in addition to that he can It is used in operations related to deferred payments such as checks and bonds, and it is also used in the storage process to grant loans through the bank.
Money is used by all individuals and they participate in doing so in all different areas of their lives. They work in order to obtain this money, and sacrifice part of it to obtain the goods and services that they need, as many forms and types of it appeared with the passage of time. Its beginnings with metal money, then it developed into paper money, then into bank money and checks through banks, and all these types are accepted by all individuals when they carry out exchange operations.
currency difference
There are many currencies in all countries of the world, each country has its own currency, but this money varies in strength from one country to another, and this means that it is one of the currencies that is very popular than other countries, and there are some weak currencies that did not receive encouragement and knowledge from Other countries, and this weakness and strength is not related to the division of money, in addition to the existence of a difference in the material value between the money, for example the currency of the State of Kuwait, the Kuwaiti dinar, is one of the most expensive and best currencies compared to others, and the most traded currency in all countries of the world is the US dollar.
Read also:What is the currency of Cambodia?
