Introduce Currency Article For Free

What Is the Meaning of currency? Currency serves as a means of exchanging commodities and services. Money in the form of paper or coins, issued by a government and accepted at face value, is known as currency. In bartering, goods and services were exchanged directly for other goods and services .

Currency is the physical paper notes and coins in circulation. By accepting the currency, a merchant can sell his or her goods and have a convenient way to pay their trading partners. There are other important benefits of currency too. The relatively small size of coins and dollar bills makes them easy to transport.

Medium of exchange, something that people can use to buy and sell from one another. Perhaps the easiest way to think about the role of money is to consider what would change if we did not have it. If there were no money, we would be reduced to a barter economy.

In 600 BCE, Lydia's King Alyattes minted what is believed to be the first official currency, the Lydian stater. The coins were made from electrum, a mixture of silver and gold that occurs naturally, and the coins were stamped with pictures that acted as denominations.

Barter system was the oldest system of money where goods were exchanged for goods and there was no common medium of exchange in the economy. Under this system, people exchanged commodities for commodities to satisfy their wants.

First banknotes in Europe It was Johan Palmstruch, founder of Stockholms Banco, Sweden's first bank, who issued the banknotes. The background to this was that, in 1660, the central government had started to mint new coins of a lower weight than the older ones.

While the use of metal for money can be traced back to Babylon before 2000 BCE, standardized and certified coinage may not have existed until the 7th century BCE. ing to many historians, it was during this time that the kingdom of Lydia (in present-day Turkey) issued the first regulated coins.