Money

Before people used money, they Before people used money, they barteredbartered, or , or tradedtraded things they had for the things they things they had for the things they wanted. For example, a person may have wanted. For example, a person may have traded five goats for one cow. Bartering was traded five goats for one cow. Bartering was not always simple, though. Each person had to not always simple, though. Each person had to agree that the items being traded had an equal agree that the items being traded had an equal value. Also, each person had to have something value. Also, each person had to have something that the other person wanted.that the other person wanted.

People invented money to avoidPeople invented money to avoid bartering.bartering.

People have used money for more than People have used money for more than 4,000 years. 4,000 years. MoneyMoney is any good or token is any good or token (знак)(знак) used by a society as a medium of used by a society as a medium of exchange, store of value and unit of exchange, store of value and unit of account.account.

Whenever people pay for goods or services, Whenever people pay for goods or services, they use some form of money. Money can be they use some form of money. Money can be almost anything, as long as everyone agrees almost anything, as long as everyone agrees on its value. One of the earliest forms of money on its value. One of the earliest forms of money was metal, such as gold or silver. In North was metal, such as gold or silver. In North America, Native Americans used beads made America, Native Americans used beads made of shell, called wampum, as a form of money. of shell, called wampum, as a form of money.

China, in 1,000 B.C., produced mock cowry China, in 1,000 B.C., produced mock cowry shells at the end of the Stone Age. In shells at the end of the Stone Age. In addition, tools made of metal, like knives addition, tools made of metal, like knives and spades, were also used in China as and spades, were also used in China as money.  From these models, we developed money.  From these models, we developed today's round coins that we use daily. today's round coins that we use daily.

Circa 900-Circa 900-500BC500BC

In the 600s BC the kingdom of In the 600s BC the kingdom of LydiaLydia in in what is now Turkey began to make coins. what is now Turkey began to make coins. It was probably the first government to It was probably the first government to do so. These coins were do so. These coins were made of made of electrumelectrum, a precious alloy , a precious alloy (сплав)(сплав) of of gold and silver that consists of about 54 gold and silver that consists of about 54 percent gold, 44 percent silver, and 2 percent gold, 44 percent silver, and 2 percent copper. percent copper.

The Lydian Lion’s Head: circa 600-575 BC

The Chinese coins were usually made out The Chinese coins were usually made out of base metals which had holes in them of base metals which had holes in them so that you could put the coins together so that you could put the coins together to make a chain. to make a chain.

Copper coins used before 221 BC

Coin issued in 221 BC by the Qin Dynasty , the first feudal dynasty to unify China and its coins.

The Greeks and RomansThe Greeks and Romans minted coins hundreds minted coins hundreds of years before the time of Christ. The very of years before the time of Christ. The very earliest coins were struck about 600 BC.earliest coins were struck about 600 BC. A lot of the Greek coins were silver. A lot of the Greek coins were silver.

Nero minted in 64-66 A.D.

Alexander the Great, coin, 355–281 BC

The first types of The first types of paper moneypaper money were used in China were used in China more than 1,000 years ago. Early paper money was more than 1,000 years ago. Early paper money was simply a written promise to pay a certain amount of simply a written promise to pay a certain amount of gold or silver money. The paper money was gold or silver money. The paper money was valuable because it could be traded for gold or valuable because it could be traded for gold or silver. Later, governments began printing paper silver. Later, governments began printing paper money. money.

The first uniform paper money in the world, the Jiaozi, issued in 1023 under the Song Dynasty.

Chinese note 1368-1399 about the size of a sheet of notebook paper.

The last paper money of the Chinese feudal dynasties: 1875 to1908

By the late 18th and early 19th centuries By the late 18th and early 19th centuries paper money and paper money and banknotesbanknotes had spread had spread to other parts of the world. to other parts of the world.

The first world money, the Spanish silver dollar The first world money, the Spanish silver dollar or “pieces of eight” minted in Spain, Mexico or “pieces of eight” minted in Spain, Mexico and Peru.and Peru.

The Spanish peso contained 25.560 grams pure The Spanish peso contained 25.560 grams pure silver and was also used as domestic money in silver and was also used as domestic money in Asia, Latin America, America and Europe. Asia, Latin America, America and Europe.

The early 20th century was the great era The early 20th century was the great era of the international of the international gold standardgold standard. . The The gold standard is a monetary system in gold standard is a monetary system in which the standard economic unit of which the standard economic unit of account is a fixed weight of gold.account is a fixed weight of gold.

IIn July 1944 n July 1944 tthe agreement he agreement of more than of more than 40 countries 40 countries led to the creation of theled to the creation of the International Monetary FundInternational Monetary Fund (IMF), which (IMF), which countries joined by paying a subscription. countries joined by paying a subscription. Members agreed to maintain a system of Members agreed to maintain a system of fixed but adjustable exchange rates. fixed but adjustable exchange rates. Countries with payment deficits could Countries with payment deficits could borrow from the fund, while those with borrow from the fund, while those with surpluses would lend. surpluses would lend.

The dollarThe dollar became the most became the most widely used currency in widely used currency in international trade, even in trade international trade, even in trade between countries other than between countries other than the United States. It was the unit the United States. It was the unit in which countries expressed in which countries expressed their exchange rate. their exchange rate.

1$ George Washington2$ Thomas Jefferson 5$ Abraham Lincoln 10$ Alexander Hamilton 20$ Andrew Jackson 50$ Ulysses S. Grant 100$ Benjamin Franklin 500$ William McKinley 1000$ Grover Cleveland 5000$ James Madison 10000$ Salmon P. Chase

The largest bill ever circulated in the United States is the $10,000 bill, which features the face of Salmon P. Chase, who was Abe Lincoln's Secretary of the Treasury. If you have one, you can spend it, but most of them are in museums these days.

OOn August 15, 1971 n August 15, 1971 tthe system of fixed he system of fixed exchange rates exchange rates broke downbroke down. President . President Richard Nixon severed Richard Nixon severed ((отделил) the отделил) the dollar from any connection to gold. Since dollar from any connection to gold. Since then the international monetary system then the international monetary system has consisted of a collection of has consisted of a collection of currencies linked by floating exchange currencies linked by floating exchange rates. rates.

5 pounds 20 5 pounds 20 poundspounds

12 European countries - 12 European countries - Luxembourg, Luxembourg, Ireland, Finland, Ireland, Finland, tthe Netherlands, he Netherlands, Belgium, Germany, France, Austria, Italy, Belgium, Germany, France, Austria, Italy, Spain, Portugal and Spain, Portugal and Greece Greece adoptadopteded the the euroeuro. . OOn February 28,n February 28, 2002 2002 all national all national bills and coins of the 12 member nations bills and coins of the 12 member nations were withdrawn from circulation and the were withdrawn from circulation and the euro became the soleeuro became the sole((единственнаяединственная)) legal currency in use. legal currency in use.