Why did man create money? Who invented money and why? Types of modern money
Proponents of this theory are Paul Samuelson and John K. Galbraith. They believe that money came into being as a result of an agreement between people. That is, at a certain stage, human society decided to consolidate precious metals monetary functions.
Evolutionary origins of money
This approach involves a transition to money according to objective reasons, including: division of labor, property isolation of producers, economic growth, the need to maintain a fair equivalent of exchange.
To understand why money was invented, it is worth considering its main functions.
Functions of money
Measure of value. This is the main function of money; it is the universal equivalent of the cost of a service or produced product. To compare different goods, it is enough to reduce their cost to the same monetary units - a single scale.
Means of circulation. Money significantly facilitates payments between producers - with the advent of coins, and then banknotes, the exchange of goods became much easier. If earlier purchase and sale necessarily coincided in time, now, thanks to the emergence of an intermediary - money, there is no need to simultaneously exchange goods for goods and interrupt the production process.
A means of storage. Being the equivalent of any product, money can accumulate, creating savings. There is no need to create storage facilities for goods; it is enough to put their equivalent in a jar or small container. It is money that allows a person to create wealth. Cash reserves smooth out the unevenness of economic life, which leads to stability.
Instrument of payment. Money can bring money, this is what the work of credit institutions is based on. This feature allows you to borrow without having to pay it off here and now, giving a promissory note.
So, money allows you to conduct trade and exchange, exchange your labor for any product, receiving a fair reward. They allow you to compare the value of different things. Money also allows you to create a certain reserve and, finally, allows you to take goods without paying all of its cost at once. That is why their appearance became an objective necessity at a certain stage in the development of society.
Municipal Unitary Enterprise "Gymnasium No. 2"
City research competition for junior schoolchildren "EUREKA"
“WHY DO PEOPLE HAVE MONEY?”
Golotvin Nikolay Danilovich 04/20/2001
2 "B" class
St. Mitrofanova 25/1 apt. 65 t.40-43-53
Contact phone: 8-906-961-21-93
Head: Savelyeva Lyubov Aleksandrovna
Municipal Unitary Enterprise "Gymnasium No. 2" teacher classes.
T: 8-913-085-64-21
PLAN 1. It would be nice to live without money. 2. How money appeared.3. What is money?4. Types of currencies.5. Kinds modern money.Conclusion.
IT WOULD BE GOOD TO LIVE WITHOUT MONEY How nice it would be to live without money. Come to any store, take whatever you want and as much as you want. Any toys, bicycles, ice cream, candy. And calmly, without paying any bills, you go home. But what happens then: since I can take whatever I want from the store, it means my mother doesn’t have to go to work, but read books with me. And dad can go fishing with me, he doesn’t need to earn money either. I came to school, and there was no teacher there, she had gone to the studio to sew a dress. I decided to take a day off. After all, you don’t have to pay for the dress. And the baker decided to never go to work at all. And when we get to the store, there won’t be a single loaf of bread. Nobody baked it. And I didn’t get a bicycle, Sasha took all the bicycles from the next door. Why does he need so much? He says: “One breaks down, I’ll ride the other.” It turns out to be some kind of mess! It turns out we can’t live without money. Every work must be paid so that people go to work and work conscientiously. So that goods in the store are bought in the quantity required. How did it happen that our lives depend so much on money? HOW THE MONEY APPEARED
When primitive people had a surplus of some products, they exchanged them with each other for other necessary products. This is how natural exchange appeared. The price (proportions) was set depending on random circumstances. Among the shepherd tribes, the instrument of exchange was live cattle: sheep, cows, bulls... The northern peoples exchanged fur - fur money. Bird feathers, grain, salt, cocoa beans, and dried fish also served as money. Tribes living on the shores of warm seas used shells as money. Impaled on a thread in the form of decorations are shell money. They turned out to be the most stable form of commodity money. The most frequently exchanged commodity became a means of exchanging different goods for each other, as if turned into money. There were different “exotic” money in the world. Fairies - stone circles, with a hole in the center, similar to millstones. The diameter of such “coins” sometimes reached several meters, and the mass – up to a ton. The fairy's owner put his mark on her. When they bought something with it, the new owner erased that sign and put up his own. Slaves were also used as money. This was all called commodity money. Such “money” could be exchanged for other goods or used in your household for its intended purpose. But it was inconvenient money! Sheep and bulls need to be kept and fed somewhere. Products spoil due to long storage. Fur is eaten by moths. People needed practical money. So that you can carry them with you and buy a large or small item at any time. And the very first type of money was cowrie shells. For a long time they were in circulation. Foreign merchants took them all over the world. But the sinks were cheap and not convenient for large transactions.
Metal products turned out to be the most convenient to handle. Over time, noble metals (silver, gold) began to serve as monetary material. At first, metal money took the form of rings, necklaces, bars, and gold dust. Then they began to make them in the form of bars with a certain weight. Later, coins began to be minted from metal - banknotes having the shape and weight established by law. Money had a wide variety of shapes: square, heptagonal, octagonal, but the round shape turned out to be the most convenient.
Money made from precious metals was more convenient. They are quite durable, do not wear out, do not rust, retain their appearance for a long time, and have almost the same composition. It is very easy to make standard coins of different denominations from them. It is difficult to counterfeit such counterfeit money. Gold and silver coins over time, replaced all previous forms of money. They did not require special care. They were stored for a long time and conveniently. They were easy to wear. They did not spoil and did not take up much space. And they could be used to pay for any product. Gold and silver money began to appear in all countries of the world. But such money also had its drawbacks. It was not safe to carry or store them. They were not convenient when making small transactions. And they constantly had to check their authenticity and weight. Gold and silver began to be given for storage to goldsmiths who had special storerooms and were ready to rent them out for a fee. Having received such a deposit, the goldsmith gave the depositor a receipt. Then people began to exchange these receipts for goods. This is how it turned out to be paper money. In China they began to make money from the skins of white deer. All white deer belonged to the emperor. The money had special signs and a seal. By order of the emperor, people paid with such money. Gold coins were worn out, they were cut off and even thinned down to a simple piece of paper. The need for gold in production increased. But there was no such amount of gold. This is how paper money appeared. Paper money first appeared in China. By themselves they were worth nothing. Each state gave them its own forced price. Release paper money as if increasing the state treasury. But their release was limited by certain rules. WHAT IS MONEY? Money is a commodity intended for exchange. A product that has been in demand in all countries for many years and plays an important role in the development of society. Money connects producer and consumer. Money serves five different functions. 1. The most important role of money is as a universal co-measurer. Money is used to set the price of a product. After all, for the exchange of goods there must be some kind of unit of measurement of the proportions of exchange. The price can rise and fall, it depends on various factors, for example, on the cost of the product, on competition. Setting a price also facilitates transactions between countries. 2. Money is universal wealth; it can be saved by putting it aside, for example in a bank. So they are a treasure. And if you save them to buy equipment for your production, then this is capital. 3. We constantly exchange money for the goods we need and vice versa, we exchange the produced goods for money: T-D-T. So money is constantly in motion, passing from one person to another, forming a single process of circulation of goods. We pay with money for the services of a hairdresser, seamstress, and repair shops. 4. Money is also used as a means of payment: purchasing goods on credit, and then repaying loans, paying taxes, etc. Bank bills, electronic money and plastic cards that arose on their basis, all this helps speed up payments.5. The development of international economic relations and world trade led to the emergence of world money. World money is used for commodity exchange between states. They are also used when providing loans from one state to another. World money includes money from the richest countries. Foreign money is called currency.
TYPES OF CURRENCY
RUBLE – currency unit Russia. EURO is a monetary unit that is used in several countries: Austria, Belgium, Germany, Greece, Ireland, Spain, Italy, Cyprus, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, Finland, France. Thus, the euro is a single currency for millions of Europeans and in our time is the most expensive and widespread monetary unit. DOLLAR- The monetary unit of the United States and is one of the main reserve currencies of the world. YEN is the monetary unit of Japanhttp://ru.wikipedia.org/wiki/%D0%AF%D0%BF%D0%BE%D0%BD%D0%B8% D1%8F, one of the world's main reserves after the US dollar and the euro. SWISS FRANK– monetary unit of Switzerland GBP- English monetary unit.TYPES OF MODERN MONEY
Nowadays money comes in many different forms. Cash and non-cash. There are iron coins - small change that we use to pay in stores. Gold and silver coins are sold in a tin for collectors. Paper money with which we make purchases and pay for services. There is credit money. With it we can buy furniture, a car, an apartment, etc. on credit. Credit money is money lent to us, which we will then have to repay. People came up with credit cards - "plastic money". They are easy to use. They take up little space in your wallet, and at the same time they can contain quite large sum money. There are also electronic money. We use this money to pay for purchases online. Electronic money goes to our cell phone account.
CONCLUSION
During the research, I concluded that money is one of the great inventions of human thought. They appeared as a result of the long development of commodity exchange. From the vast world of goods, a special product emerged, convenient and practical, which served as money. Nowadays, money is a necessity for the life and development of every person. We cannot live even a day without money. With money we can buy food, clothes, books, toys, and go on a trip. They make our life comfortable and varied. The desire to buy something makes us work for the benefit of society. This is how we make money. To earn money more money, people have to work harder and better. Because of this, the quality and quantity of goods and services produced increases. The hairdresser tries to cut hair more beautifully and quickly so that he has more satisfied clients. The baker is trying to bake more and tastier cheesecakes. Confectioners come up with new, more delicious candies to increase demand and sales of their goods. The economy is growing. The standard of living of society is increasing. This means that money contributes to the evolution of humanity.
The circulation of the currency is limited to the city of Bristol, after which the local pound is named; people have already dubbed it “Bristolik”. This experiment is being conducted to support small businesses. The fact is that due to the protracted crisis, the purchasing power of the population has fallen even in such a rich country as Great Britain. The Bristol pound can be obtained by exchanging it at a bank at a rate of 1:1 in relation to the pound sterling. When performing a reverse transaction, a 3% tax will be charged.
Money originated in China during the Shang Dynasty, which ruled from 1600 to 1027 BC. Issued on September 18, 2012 by the People's Bank of China gold coin in honor of the first Chinese state.
During the Shang Dynasty, centralization of power began in China, the ruler was the king, he was the nominal owner of all the land of the state. There were clerks and archivists at the court. The royal power relied on the nobility, warriors and clergy. Ritual services were held in temples.
What happened in China before 3,600 years ago, no reliable written sources have been found to date. It is assumed that the territory of China was inhabited by various tribes, subsisting on crafts and natural exchange. How could the tribes unite, how did the monetary form of payment appear? Scientists say that a need simply arose, they just got together and came up with money for themselves. Let's try to imagine the average person of that time. He fishes, picks berries, raises livestock, makes household items... Can you imagine? Now imagine that he so simply exchanged it for some items that were of no value to him, because before that there was no money at all! Natural exchange is understandable, a man exchanged his fish for vegetables, for clothes, a shovel... But why does he need pieces of bronze, what, carry these pieces of iron with him? It was only later that money with holes appeared, for ease of carrying, and then they were cast coins, similar to the one shown in the picture.
How to wear them and why such a bizarre shape, does it look like the head of a cow or ram? Surely taxes were introduced in the emerging state, but how to maintain the administrative apparatus, the king? And of course, they were initially collected in kind. Some will take fish, some clothes, some cattle, and this includes food and skins - they can be used for clothing. Surely the standard of tax was cattle, but why not take half of a cow? This coin really looks like a cow's head. By the way, such coins were in use until the 3rd century BC.
But how can you force a person to pay taxes? After all, he himself won’t pay it voluntarily, why is this all of a sudden, none of his ancestors paid anything. Here we remember the time of perestroika and the beginning of the 90s of the last century. Remember how a person came to a cooperator (artisan) offering security and when he did not agree, the next day hooligans came and caused damage, the cooperator himself turned to the “security structure”?
How can you track whether the tax has been paid or not, since paper was invented in China fifteen hundred years later? Signs? Well, this is China, there were a lot of them there even then. Cars with signs are difficult to take into account and control. So they came up with tokens - coins. The coins are easy to carry and can also be exchanged. This is how one of the modern functions of money appeared - a measure of value. The tax inspector (publican) gave one coin in exchange for a large horned animal, the same thing happened when exchanging 3 goats, 3 bags of fish, etc. Of course, there were cunning people; they immediately laid down such a loophole with deception. However, little has changed since then.
Over time, it became fashionable to show how much you paid in taxes, which means you are a rich person. We started exchanging and collecting these tokens. The function of modern money has appeared - accumulation. If people understood that by accepting a coin or bill from anyone, they doom themselves to be tied to the one who produced it. After all, it will be necessary to change them back, and this is how people drive themselves into slavery, dependence on paying taxes.
The further this epic continued, the more money was introduced into circulation. The money supply began to far exceed the quantity of goods produced. The goods deteriorate, and there are practically no coins. This is how inflation appeared. Then they began to lend money at interest, thereby further depreciating the value of the goods. After all, you took one coin, but you need to return 2. This is such nonsense.
Throughout the history of mankind, everything has served him as money: from cow skulls in Borneo to human skulls in the Solomon Islands, from bars of salt in Africa to tile tea in China and Burma. In Ancient Mexico, payments were generally made using cocoa beans. But what’s most interesting is that even in those days there were “counterfeiters” counterfeiting beans. People have tried everything as a means of payment: tobacco, grains of rice, corn, dried fish, skins, livestock, people.
Money changed, but the attitude towards money remained the same...Basically, nothing has changed now.
On September 19, 2012, a local currency was introduced into circulation in the UK.
The circulation of the currency is limited to the city of Bristol, after which the local pound is named; people have already dubbed it “Bristolik”. This experiment is being conducted to support small businesses.
The fact is that due to the protracted crisis, the purchasing power of the population has fallen even in such a rich country as Great Britain. The Bristol pound can be obtained by exchanging it at a bank at a rate of 1:1 in relation to the pound sterling. When performing a reverse transaction, a 3% tax will be charged.
How can introducing a local currency revitalize the economy? Let's figure it out together. What is money, when and how did it appear?
Money originated in China during the Shang Dynasty, which ruled from 1600 to 1027 BC. On September 18, 2012, the People's Bank of China issued a gold coin in honor of the first Chinese state. 
During the Shang Dynasty, centralization of power began in China, the ruler was the king, he was the nominal owner of all the land of the state.
There were clerks and archivists at the court. The royal power relied on the nobility, warriors and clergy. Ritual services were held in temples.
What happened in China before 3,600 years ago, no reliable written sources have been found to date.
It is assumed that various tribes lived on the territory of China, subsisting on crafts and natural exchange. How could the tribes unite, how did the monetary form of payment appear? Scientists say that a need simply arose, they just got together and came up with money for themselves. Let's try to imagine the average person of that time. He fishes, picks berries, raises livestock, makes household items...
Introduced? Now imagine that he so simply exchanged it for some items that were of no value to him, because before that there was no money at all! Natural exchange is understandable, a man exchanged his fish for vegetables, for clothes, a shovel... But why does he need pieces of bronze, what, carry these pieces of iron with him? It was only later that money with holes appeared, for ease of carrying, and then they were cast coins, similar to the one shown in the picture.
How to wear them and why such a bizarre shape, does it look like the head of a cow or ram? Surely taxes were introduced in the emerging state, but how to maintain the administrative apparatus, the king? And of course, they were initially collected in kind. Some will take fish, some clothes, some cattle, and this includes food and skins - they can be used for clothing. Surely the standard of tax was cattle, but why not take half of a cow? This coin really looks like a cow's head. By the way, such coins were in use until the 3rd century BC.
But how can you force a person to pay taxes? After all, he himself won’t pay it voluntarily, why is this all of a sudden, none of his ancestors paid anything. Here we remember the time of perestroika and the beginning of the 90s of the last century. Remember how a person came to a cooperator (artisan) offering security and when he did not agree, the next day hooligans came and caused damage, the cooperator himself turned to the “security structure”? 
How can you track whether the tax has been paid or not, since paper was invented in China fifteen hundred years later? Signs? Well, this is China, there were a lot of them there even then. Cars with signs are difficult to take into account and control.
So they came up with tokens - coins. The coins are easy to carry and can also be exchanged. This is how one of the modern functions of money appeared - a measure of value.
The tax inspector (publican) gave one coin in exchange for a large horned animal, the same thing happened when exchanging 3 goats, 3 bags of fish, etc. Of course, there were cunning people; they immediately laid down such a loophole with deception. However, little has changed since then.
Over time, it became fashionable to show how much you paid in taxes, which means you are a rich person. We started exchanging and collecting these tokens. The function of modern money has appeared - accumulation. If people understood that by accepting a coin or bill from anyone, they doom themselves to be tied to the one who produced it. After all, it will be necessary to change them back, and this is how people drive themselves into slavery, dependence on paying taxes.
The further this epic continued, the more money was introduced into circulation. The money supply began to far exceed the quantity of goods produced. The goods deteriorate, and there are practically no coins. This is how inflation appeared. Then they began to lend money at interest, thereby further depreciating the value of the goods. After all, you took one coin, but you need to return 2. This is such nonsense.
I wonder who came up with all this and for what purposes? But you can read about this and much more in Anastasia Novykh’s unique books. It describes not only how the world works, but also how to bypass the traps cunningly placed on every corner, and, of course, about those who set these traps and why. You can download books completely free of charge (spiritual knowledge is given only for free) in the corresponding section of our website. And you can read the fragment right here, see the excerpt below.
Money- one of the greatest human inventions. The origin of money is associated with 7 - 8 thousand BC, when primitive tribes had a surplus of some products that could be exchanged for other necessary products. Historically, livestock, cigars, shells, stones, and pieces of metal were used as a means of facilitating exchange, with varying degrees of success. But to serve as money, an item must be generally accepted by both buyers and sellers as a medium of exchange. Money is determined by society itself; everything that society recognizes as circulation is money. Indeed, money is a commodity that acts as a universal equivalent, reflecting the value of all other goods.
What are the main stages in the history of the development of money?
First stage— the appearance of money with random goods performing its functions; second phase- assigning gold the role of a universal equivalent (this stage was, perhaps, the longest); third stage— the stage of transition to paper or credit money; And last fourth stage- the gradual displacement of cash from circulation, as a result of which the emergence of electronic views payments.
Gold and silver as money
Gold and silver most fully met the above requirements, thus, in the process of the evolution of commodity exchange, a special, absolutely liquid commodity is singled out, used as a universal equivalent of the value of money. These commodities become gold and silver, an early form of metallic money.
Gold and silver appeared as money back in the 13th century BC. e. in the form of various ingots with a certain weight of metal. As a result further development market relations, coins begin to be minted from metal - banknotes that have a form established by law and weight full monetary content.
Coins made from a natural alloy of gold and silver (electrum) first appear in the state of Lydia in the 7th century BC. e. In Rus', coinage began to be minted in the 9th - 10th centuries. However, due to the lack of gold deposits in Kievan Rus, foreign ones were predominantly used - Arab and Byzantine coins made of gold and silver. Later, from about the 11th century, silver and copper ingots began to be used in domestic circulation. The most common was a silver bar weighing one pound (approximately 400 g), which had the name « » . But the “hryvnia” had a rather high value, so it was cut in half, into two equal parts, called « » , or “ruble hryvnia”.
Commodity money
The early form of metal money is characterized by the coincidence of the commodity value of the metal contained in the coins and their nominal value indicated on the obverse of the coin. This is one of the disadvantages commodity money. If their value as a commodity exceeds their value as money, then they will cease to function as money. Indeed, if, for example, a ruble coin had a silver (or gold, or some other) content worth, say, two rubles, then it would be very profitable to melt down the coin and sell it as an ingot. Therefore, despite the illegality of such actions, ruble coins would begin to disappear from circulation.
In this regard, from about the 15th century, metallic money began to lose its commodity basis. Metal money begins to be divided into full-fledged(the nominal value of which corresponds to the value of the metal they contain) and inferior(face value is higher than the value of the metal contained). Currently, in no country in the world is metallic money valid.
History of paper money
Deserves special attention origin of paper money. Where did they come from? To answer this question it is necessary to turn again to history.
Soon after gold began to be used in transactions, it became apparent that it was inconvenient and unsafe for both buyers and traders to transport, weigh, and test the purity of gold each time a transaction was made. Therefore, the rule came into practice give gold to goldsmiths for safekeeping who have special storage rooms and are ready to provide them for a fee. Having received a gold deposit, the goldsmith gave the depositor receipt.
Soon, goods were exchanged for these receipts, which became an early form of paper money, and the goldsmiths themselves became the prototypes of modern bankers. Since the gold kept by goldsmiths in storerooms was rarely in demand, that is, it was not in circulation, we can say that the receipts were full-fledged money, since their quantity exactly corresponded to the amount of gold in the storage of goldsmiths.
This was until some inventive goldsmith, seeing that the amount of gold coming in exceeded the amount being withdrawn, began to issue receipts not backed by gold, giving loans at interest to merchants, manufacturers and consumers. This is how it was born fractional reserve banking system. These receipts were no longer full-fledged money. It is believed that the founders of banks and paper money were English goldsmiths. Subsequently, the right to issue paper money passed from private hands to the state.
In our country, paper money appeared in 1766 by decree of Empress Catherine II. At present, just like metal money, paper money in no country in the world has a commodity basis, that is, it is not exchanged for gold or other precious metals. metals.
