Please enable JavaScript.
Coggle requires JavaScript to display documents.
THE HISTORY OF MONEY - Coggle Diagram
THE HISTORY OF MONEY
People kept tallies of exchanges they had made. They included the record of who had been paid and who still owed.
The communities grew, so did the exchanges. It became difficult to keep record of absolutely everything.
IOUs (I Owe You) might have been a great solution but they were difficult to enforce or verify. Hence people started using objects which was the first step to inventing money.
-
Thanks to this money started to possess a number of crucial characteristics:
- legitimised
- hard to forge
- durable
- portable
- divisible
-
-
Chinese people hit on with the idea of keeping heavy coins back in the palace and issuing IOY certificates on paper
As global trade grew the idea of paper money caught on. A standard for exchange between different currencies has been created.
The American dollar has been created after the war. Because of the excessive trade of the US dollar has become the most widely used currency.
-
- Money and saving the banks
-
However, dollar continues to retain its power and value. It's caused by the fact that so many people believe in dollar.
Supply of dollars has been increased. As a result, it has been predicted that dollars might lose its value eventually.
Yap population started to introduce promissory notes, which led to the creation of banking.
Credit cards and electronic banking technology have enabled massive global transactions within seconds.
-