How does the world s money come from, and how does it come about

Money is also money, which is generally issued by the state, and to put it bluntly, it is a thing that serves as a value function, because at the beginning, if people wanted to buy things, they were bartered, and this method was too troublesome, so gold, silver, copper coins and so on were derived.

Currency is a medium for purchasing goods and preserving wealth, and it is actually a contract between the owner of the property and the market on the right of exchange, which is basically an agreement between the owners of each other. I give what I have to the market in exchange for what I need, and money is the agreement of this process, which reflects the economic cooperation between the individual and the society.

The contractual nature of money determines that money can have different manifestations, such as general equivalents, *** money, paper money, electronic money, etc. It can be used as a medium of exchange, storage value, deferred payment standard, and unit of account. Physical money is a special commodity that acts as an equivalent in the exchange of goods and services, and is the material appendage and symbolic appendage of people's commodity values.

Including both currency in circulation, especially legal currency, as well as various savings deposits, in the modern economy, only a small part of the field of money is displayed in the form of physical currency, that is, paper money or coins in practical use, and most transactions are made in checks or electronic money. A currency area is a country or region that circulates and uses a single currency.

The concept of exchange rate needs to be introduced when exchanging currencies between different currency areas. In the modern economy, money plays a fundamental and fundamental role. In macroeconomics, money refers not only to cash, but also to cash plus a portion of tangible and intangible assets.

Money is created to facilitate the exchange of objects for equivalence. Money is also a commodity, so some people have it and some people don't.

Origin: Money is a product of commodity exchange. The earliest money that appeared at the end of primitive societies was in kind. Generally speaking, nomadic people use livestock and animal skins, while agricultural people use grains, cloth, agricultural tools, pottery, seashells, pearls and jade.

According to archaeological excavations, a large number of clay pots were unearthed as burial objects in late Neolithic sites, such as Banpo; The Dawenkou culture buried a large number of pig heads and jawbones, indicating that pigs and pottery played a role in money in the late primitive society. But as we all know, the ancient money that is widely circulated is "shellfish". Because cattle, sheep, pigs and other livestock cannot be divided, the grains will rot, there are too few pearls and jades, and the knives and shovels are bulky, so they are finally concentrated in the real object of seashells.

Seashells can be used as neck ornaments, have use value, easy to carry and count, so they are selected as money in long-term commodity exchanges. In the archaeological excavations, a large number of natural shellfish have been unearthed in the Xia Dynasty and Shang Dynasty sites, and shellfish have been used as money until the Spring and Autumn Period. Therefore, most of the characters related to wealth and value in Chinese characters are related to the character "bei".

Evolution: The evolution of natural money to artificial money. Shellfish is the earliest currency in China, and the Shang Dynasty used shellfish as currency.

In Chinese characters, most of the characters related to value are from "bei". With the development of commodity exchange, the demand for money is increasing, and seashells can no longer meet people's needs, and people in the Shang Dynasty began to imitate seashells with copper. The emergence of copper coins is a major evolution from natural currency to artificial currency in the history of ancient currency in China.

With the extensive use of artificial coinage, the natural currency of seashells has slowly withdrawn from China's monetary stage.

Summary. Money is a liquid asset used for the settlement of transactions, and its function is based on the general acceptance of its value through foreign exchange, both economically and internationally. The circulating value of a currency does not come from the banknote or coin material itself, instead, the value comes from the willingness of market participants to use it in transactions.

Holding and willing to accept it as a recognized medium of exchange for transaction payments, which is the primary function of money. In order to play the role of currency exchange, the monetary system began to be gradually established, providing a unified medium for buying and selling transactions in the market.

Money is a liquid asset used for the settlement of transactions, and its function is based on the general acceptance of its value through foreign exchange, both economically and internationally. The circulating value of a currency does not come from the banknote or coin material itself, instead, the value comes from the willingness of market participants to use it in transactions. Holding and willing to accept it as a recognized medium of exchange for transaction payments, which is the primary function of money.

In order to play the role of currency exchange, the monetary system began to be gradually established, providing a unified medium for buying and selling transactions in the market.

Money is created through the spontaneous order of the market of barter (or direct exchange). In a barter system, people directly exchange one good or service for another. In order to trade in barter, the two parties involved in the transaction must want the goods or services offered by the other party.

This is known as the "double coincidence" of demand, and it severely limits the range of transactions that can occur in a barter economy.

However, certain goods in the barter economy are often needed by more people in exchange for whatever they have to offer in barter**. Over time, these special kinds of goods will be needed in **, which is a problem caused by the "double coincidence" of overcoming the needs of future transactions with others. Ultimately, people's desire for a good may be primarily or simply for its use value in future transactions that reduce transaction costs.

Such a commodity can be called money because it is generally considered a valuable commodity by economic actors because it serves as a medium to indirectly exchange other goods and services between multiple parties. Physical commodities still have some other use value, but the primary use of any value** in the market is as money. Historically, precious metals like ** and ** were adopted as this market-determined currency.