Evolution of money has led to expansion of market. Explain how [4marks]
Dear student,
The evolution of money has started due to shortcomings of Barter system. Barter system of exchange involved the exchange of commodities for commodities
After the Barter system, metals began to be used as a medium of exchange. Gold and silver were the two metals that were of particular importance and were widely in use. Metallic money was in use up-to the first half of 18th century.
With increase in volume of trade and use of money paper currency was developed.
Now-a-days, bank money has become the most convenient and durable form of money. Individuals frequently use credit money in the form cheques, drafts, credit card etc. Along with this, plastic money in the form of debit-cards has also emerged as an attractive medium of exchange. Moreover, net banking facilities and online transactions have further reduced the risked involved in carrying paper money
Regards
The evolution of money has started due to shortcomings of Barter system. Barter system of exchange involved the exchange of commodities for commodities
After the Barter system, metals began to be used as a medium of exchange. Gold and silver were the two metals that were of particular importance and were widely in use. Metallic money was in use up-to the first half of 18th century.
With increase in volume of trade and use of money paper currency was developed.
Now-a-days, bank money has become the most convenient and durable form of money. Individuals frequently use credit money in the form cheques, drafts, credit card etc. Along with this, plastic money in the form of debit-cards has also emerged as an attractive medium of exchange. Moreover, net banking facilities and online transactions have further reduced the risked involved in carrying paper money
Regards