Money is a universal commodity equivalent; it can be used to express the value of any goods and services. By themselves, they are a unique commodity through which you can carry out the functions of exchange, measure value, make payments, accumulate wealth.
Ancient money
Once the economy was exclusively barter, when goods were exchanged for goods directly, money as such did not yet exist. However, over time, it became inconvenient to do this, as a division of labor appeared. To make a barter exchange, it was necessary to find a person who would need exactly the services that the second person could provide. For example, an actor, in order to get a haircut, would need to find a hairdresser who was interested in the work and roles of the given actor.
To facilitate the exchange of goods, people came up with an equivalent with which they could make payments and pay. In some ancient countries, cowrie shells were used, they were used as money among the peoples of Africa, Oceania, Asia. Even such ancient civilizations as India, China and Japan used such "money".
Before the invention of money, cattle served as one of the forms of expressing value. With the discovery of copper and bronze, the first coins began to be made from these metals, then gold became the equivalent of value, and money began to be made from it. Over time, the coins acquired a round shape, the same weight, became convenient for use. Their basic parameters and solvency have already been protected by states. With the expansion of trade and services, it became inconvenient to carry a large number of coins with them, and people began to look for a replacement.
Paper money
Around the middle of the 18th century, North America and Europe developed very rapidly in trade relations, and a lot of cash was required to ensure trade turnover. And this was a certain inconvenience due to their large weight and volume. The need to replace coins with lighter banknotes was very acute. As a result, paper money was introduced into circulation. Initially, they were bank bills, they guaranteed the payment of a certain amount to the bearer in metal coins.
In Russia, the issue of paper money was considered in 1744 and was rejected. Bank notes appeared in Russia only in 1769, under Catherine II. At that time, banknotes were already issued with security elements in the form of embossed embossing and watermarks, thus they were protected from counterfeiting. At the present stage, paper banknotes are beginning to displace electronic money, with the help of which payments are made, salaries are calculated. It is a wide payment instrument of modern society.
