Money is a commodity that is the universal value equivalent of all other goods and services. Although, according to the saying, happiness is not in money, the absence of money as such hindered the progress of human society. It is not possible to say exactly when the very first money appeared, but the history of their invention and development is known.
Instructions
Step 1
For a long time, there was no universal equivalent to the value of all existing goods in primitive society. People lived by hunting and gathering and simply shared with each other. Later, with the advent of animal husbandry and agriculture, direct exchange arose.
Step 2
Then the craft was born, and the role of exchange in the development of society and production increased significantly. In parallel with this, society began to change radically: from primitive communal to slave-owning. Products began to be produced specifically for exchange, the exchange process itself became incredibly complicated due to the abundance and variety of goods and the lack of their equivalent. The lack of money hindered the development of both production and society itself.
Step 3
The allocation of a certain commodity as a universal equivalent was not the result of an agreement, but happened spontaneously. In different parts of the world, completely different goods began to perform the function of money: fur, cocoa beans, livestock, salt, slaves, etc. But one way or another, the most valuable and rare commodity, often obtained from other tribes, brought from afar, etc., has always become the universal equivalent.
Step 4
In the course of history, some equivalents supplanted others, until finally humans made metal money. At first, the money was iron, then copper. There are also mentions of lead and pewter. The turning point came when money began to be made from precious metals: gold and silver. Money circulation has become elastic. In the VII century. BC. minted coins appeared in circulation in Lydia. And only at the beginning of the IX century. AD the first paper money was invented in China. Moreover, in Europe (and in Russia as well), they became widespread only in the 18th century, and throughout the world - in the 19th. In Russia, paper money began to be used in 1769, and they were called banknotes.
