Types of money and their historical features

Money is a specific form of goods, through which you can determine the equivalent value of a product or service. If we trace the history of their occurrence, it becomes obvious that the types of money were and are absolutely different. Currently, the currency has not so much a commodity as an "obligatory" look, which has the form of a banknote. As a result, money is called upon to perform certain functions that characterize their essence. First of all, it is a way of accumulation, circulation, payment and a certain criterion of value.

In order to fully present the financial system of our time, which has been formed and developed historically, it is necessary to consider the main types of money and their features. So, first of all, we should remember about commodity money. They note that they appeared as the very first type of exchange equivalent. Their species differed at certain times and in certain peoples. So, as a commodity money in its time were shells, salt, tea, fish, ivory, pet skins, some common valuables (for example, the tips of copies). When civilization reached a higher level of its development, gold and silver coins began to perform in this role.

All kinds of money characterize this or that era. However, each of them had to meet the same requirements:

1. Possess a relatively constant and high degree of value.

2. High prevalence level.

As economic activity expanded, commodity money could no longer fully satisfy the economic demands of the market. Therefore, metal appears. Man mastered certain crafts, because in the role of currency began to act lead, tin, iron, copper and, finally, silver and gold coins. The first of them date from the 7th century BC.

Such kinds of money appeared, because people needed a currency, characterized by ease of use, safe and convenient transportation, and a low degree of spoilage.

The next form that appeared in everyday life is a symbolic currency. These are modern banknotes, the issue of which is fully within the competence of banks. This money has a certain value, which is determined by their quality, namely the degree of performance of their functions and the level of recognition of their participants in payment processes. The level of their value is also determined by the extent to which the state allows their use as a legitimate means for paying taxes and payment throughout the country.

In general, paper money is a sign that completely replaced a full currency. They are an unstable equivalent, because they are completely dependent on inflation. Very often paper money depreciates, because the purchasing power of the population is declining.

The last type is credit money, the emergence of which became necessary due to the development of credit relations. To date, this type of currency is the most popular way of calculating. Credit money determines the rights to property, which are endowed with natural or legal persons.

The most striking example of this type of currency is the WebMoney system, which is so firmly entrenched in our lives that it is hard to find someone who would not have heard of it or used it.

There are such kinds of money as cash and non-cash. And the first include not only banknotes, but also some credit, for example, a bill, a check and a banknote. As for non-cash, they are listed on the credit account, in particular, plastic cards, credit cards and electronic money.