Money: types and essence

Cash and non-cash money is, you might say, the "blood" of the economy. They measure both the state budget and the welfare of individual families. The essence and types of money will be described below.

Once upon a time, many thousands of years ago, in the primitivesociety had no means of circulation. Economic relations were limited to barter - "awl for soap". But with the development of society it turned out that not all things can be found something of equal value. Therefore, people began to use objects that acted as an intermediary in barter. So the first money appeared. Their species were very diverse. The role of money was the goods that were most in demand. These are: animals, pieces of salt, valuable furs, rare stones, dishes, precious metals. The latter eventually replaced all other money. Types of gold and silver methods of circulation, which were originally used, are ingots, ornaments, bars. Coins with images of rulers or gods, who were worshiped by the local population, appeared a little later. Precious metals were used as a means of circulation, because they were very rare material and did not succumb to oxidation, which means that the products from them were stored for a long time.

The first institutions that started accepting moneyunder interest, appeared in the Middle East, or rather - in the Babylonian Empire. To store large amounts of gold in such reliable places was safer and more profitable than to hide their houses. Banking in Europe ceased to exist after the fall of the Roman Empire. But it revived after the first crusades. At the beginning of the eighteenth century, European banks began to issue to their depositors receipts indicating how much money was put in their account. Over time, depositors realized that banknotes are also a means of circulation. Such money was much more convenient than cumbersome and heavy bags of coins. In the last century, banknotes finally replaced gold and silver.

Different are money. Today their species are very diverse. Pay for services or goods can not only banknotes. What are the forms and types of money?

A promissory note is an obligation to pay throughfor some specific time. It, as a rule, does not contain information about the concluded transaction. Credit money is used in the event that the purchase and sale is carried out by installments. At the same time, one of the parties to the transaction will pay off the debt through the agreed term. A banknote is, in essence, an indefinite debt obligation secured by the central bank of a country. A check is an order to pay a certain amount to the recipient. In recent decades, due to the development of scientific and technological progress, electronic money has appeared. Types of such means of circulation: plastic cards and electronic systems. The latter include the well-known to many Webmoney, Kiwi, Yandex-Money and others. Electronic purses have password restriction and data protection. The most popular and reliable system of Internet payments at the moment is WebMoney. In order to withdraw money from Webmoney, you need to check the phone number. This is necessary if you want to open a purse in this system.