What did the function of money in the pre-money era

For the modern user, the exchange of goods with the help of a monetary equivalent has become so commonplace that it is rare for anyone to think about money, and what value ordinary pieces of paper or metal discs can cost, the cost of which is calculated in pennies.
To answer this question, it is probably worthwhile to trace how the money appeared in its present form, and how the exchange of goods occurred before their invention.

Why did you need to invent money


The main function of modern money is to determine the measure of the value of a product or service. Money is the only way to unify the amount of pledged labor for production.
In the early stages of barter relations, barter systems were used. Each manufacturer independently determined the range of goods that could compensate for the cost of its offer. Therefore, there is a need to create templates that determine the value of each type of goods.

What served as the money of different nations in different historical eras


The need to choose the commodity equivalent sooner or later appeared in all members of the human race, regardless of their location. In various parts of the world, a variety of items were used as the conventional units that form the value of a commodity.
In Russia, in Canada, sable skins served as a measure of value.
The nomadic tribes and, a little later, the cattle breeders, the cattle served as a bargaining unit.
Many peoples living in the coastal regions used shells and washed-washed stones as money.
Often there was the use of food as a cost equivalent. In Mexico, cocoa beans, in India, sugar, in some African tribes, salt.
The Scythian tribes currency were arrowheads.

What requirements must meet the money


At certain stages of trade relations, the use of items as money streamlined trading processes. But with the expansion of the market there was a need for standardization of commodity equivalents.
First, the money must be convenient to store. Secondly, when dividing, they should not change their values.Thirdly, they should be of equal value for representatives of all regions.
A symbiosis of archaic money and money in their modern version can be considered coins of the 7th century, which were made of a natural alloy of an electron in Lydia. Over time, their flocks are minted from gold.
The emergence of money led to a surge in the development of handicrafts and trade, and became a fundamental milestone in the further development of civilization.

Date: 09.10.2018, 02:55 / Views: 51255

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