Types of money according to the historical development
If we come to the historical evolution of money, we can divide to five
major types as Yale:
First (1) Commodity money, goods or cash, those coins full or in part.
Second (2) paper money, which is divided into three sections as follows:
1.
Paper money deputy for gold by 100%.
2.
Paper money deputy by 50%.
3.
Paper money is mandatory.
Third (3) money banking
Fourth (4) cash credit.
Fifths (5) electronic money.
The following is a separate these five types:
First (1) Commodity money, goods or cash, those coins full or
in part
Appeared money commodity, as a result many of the difficulties in the
process of barter, in terms of unequal goods, and the incompatibility of their
respective owners, and the inability of some of the division such as livestock,
for example, (we'll come to mention it in detail, in subsequent parts deal with
barter), so people sought refuge in an intermediate good, or scale in Ye
Therefore, in order to attribute to him all different goods, and be acceptable
to all dealers in the market, it has used the human some kinds of animals,
commodities and intermediates, and the market here means a gathering place this
group of human, for example, market ancient Egyptians "Pharaohs" was
different from Indian market, Ochinyen or the Greeks and so on. It has
Egyptians used wheat as money, but the Greeks have used the cattle as money,
the Indians used tobacco, and the Chinese have used knives and so on, each
human group we drive commodity own, which they used as a measure of the value
of the time, according to available for their goods, has been named this
intermediate goods commodity cash, or commodity money, and using these goods
and monetary medium of exchange, transformation system based on barter trade
gradually, to exchange system based on the use of the money, which is still a
commodity but also a standardized commodity.
Became a swap operation phases pass, selling solo what you have of a
commodity or commodities, and then buy the single other commodity you want, by
an intermediate good, a commodity monetary standard, obtained from the sale of
what was to have the goods. Owner of the cattle, for example, in ancient Egypt,
was sold or replaces it with cash (wheat), then this money commodity (wheat),
or part thereof, buys what he needs from honey or oil and so on. After the
evolution of conditions slowly, dissolved precious metals such as gold and
silver, as a means of exchange replace wheat and cattle and goods other
standard, and the reason for choosing the precious metals for the exchange of
cash, in preference to other commodities, is the enjoyment of qualities are
important, are not available in the other, of which the most important of
scarcity, in gold and silver elements which are rare in the earth, that is
lacking, such as iron, for example, and this is the most important feature of
these two elements, then the rigidity and lack of usability of the loss with
time, money, which makes them easy to make it homogeneous, and indivisible,
easy to carry and store, but most important of all, they enjoy a rare Relative.
Features of the full coins, which are in the form of coins for gold or
silver, is that legal or nominal value equivalent to the value as a commodity,
what does this mean? Meaning that the market value or herself as an element or
metal, draw with legal value, how? Let's take an illustrative example, if we
assume that there has been a rise in the market value of money Full Metal,
(worth a metal), on the legal value of its pound for example, that it will pay
the public holders of these currencies, to melt gold sovereigns and converted
into alloys to obtain profits, will This of course, to increase the supply of
gold bullion in the market, exerting downward pressure on the market value of
gold even equalized again with a cash value or legal him, and vice versa, if
the market value of gold will resort people to convert to coins legal, and the
result is equivalent to the monetary value with the value market. Of the most
prominent examples of the coins is a full pound golden before the First World
War, as well as the U.S. dollar by the year 1934.
Second (2) paper money, which is divided into three sections
as follows:
With the development and growth of economic activity for groups of
mankind, and the changing conditions and circumstances appeared paper money (we
will devote full angle of the origins and evolution of paper money later) can
be defined as paper money, as an instrument, or documents in circulation issued
to the bearer, and represent a particular religion under the protection of the
monetary authorities issued, It is present in our countries' central banks,
institutions or cash out. Central banks in different countries, or any monetary
authority other responsible for this, in a country that is trading when those
coins are issued that kind of money or currency, has evolved these documents in
circulation, for the cover, which is based upon, there are three main stages
three the evolution of paper money, will come on quickly mentioned herein, but
we have a special section will be devoted later to its importance.
We can summarize the evolution of paper money are as follows:
Paper money deputy for gold by 100%, what does this mean? Means that the
gold cover for the money equal to 100%, how? Paper money MP, resembling coins
gold full, and fir it but characterized them in the expenses of printing is
less than expenses coined the metal itself, as that used instead of metal,
prevents corrosion of metal and truncated portions of it by the public, as well
as easy to carry, and there is full freedom, to convert these paper money to
gold and vice versa, and this has made the value of the securities traded,
equivalent to the value of the gold represented by, for example, this paper
money, is a certification gold, which was issued by the Treasury United States,
which had maintained against which the quantity of gold equivalent value, the value
of gold equivalent to the value of these certificates completely, meaning that
gold cover for these certificates, was equivalent to 100% of the value, which
is why so-called gold certificates, we will allocate later full angle of the
federal American, and a link to the U.S. dollar gold out of date, and the
stages he went through, and what happened Later decoding of this correlation
with gold, a few decades ago, and that the importance of this matter, and the
need to understand clearly, to understand what is going on around us, and what
is expected of our world, from economic crises, the other does not, God forbid.
Paper money deputy by 50%, what does this mean? Meaning simply, that the
money covered half the legal value of gold, how and why? After the evolution of
the use of paper money MP, and their ability to have earned the confidence of
the holders, and dealers out of the audience, we mean their confidence in the
party that issued, and suitability in circulation, has found the monetary
authorities, they need not to keep a lid golden full 100% of the value of the
metal , and then I took this ratio less until it reached 50%, and this is the
paper money MP by 50%, where 50% of its value comes from the value of the metal
and the other 50% comes from the power of sanitization year, conferred by the
law of the issuer her. Source of banknotes remain viable gold exchange, even
though the proportion of the gold cover him equivalent to 50% of the total
cover. Note here the economy's strength, and the reliability of the issuer, The
currency here is covered by only 50% in gold, however, can be cashed at their
full-bearer went.
Paper money is mandatory, with the development of conditions accelerated
as well, and under the pressure of events, population growth, diminishing gold
because of its use of modern multi-in medicine, industry and so on, and even
food (Yes, there are meals of gold, prepared by restaurants internationally
renowned, will come on the mentioned later in Topics gold), those conditions made
the quantities of gold are not available to fill the gold cover of the coin,
and suspended the monetary authorities in some countries, exchange gold, and
thus became the paper money is mandatory, and can be defined as the paper money
compulsory, as are those of paper money is freely convertible currency with
gold, and are based on value to the power of sanitization year, it casts upon
the law, and the public's confidence that the money, the point is released, and
continue to generally accepted in the exchange.
Thirdly (3) money banking
Appeared this money bank, with the occurrence of advancement and
progress in the world in general, and in the banking system in particular,
which is made up of current accounts or demand deposits, with different banks,
and the ownership of these deposits from one person to another by check, and
the check is directed the owner of the deposit (creditor) to the bank (debtor)
in order to pay for his order, or to the order of another person, or to bearer,
a certain amount of money a blogger on this check. Of course consistent money
bank with paper money in terms of the fact that both the cash credit, cash
credit is cut off the link between the nominal value as cash and commercial
value as a commodity, where the value of goods for each of money banking and
paper money very cheaply, and hence the value comes from the force of law, and
to accept Individuals dealing with. Banking shares also coins with paper money,
in the fact that both are also considered debt for the benefit of the holder,
or the owner or possessor, edema in the body that is committed by, or issued by
a central bank in the case of paper cash and commercial banks in the case of
cash banking.
Vary money banking paper money in is very important and is the general
acceptance, Valencod bank does not enjoy general acceptance in circulation,
where not required by law to creditors to accept it, as opposed to paper money,
and Obina him the check, legally, is not money for that person is entitled to
refrain from accepting, if you have a check worth a thousand Euros went to buy
its merchandise from the store, what will give you the course, because paper
money banking, does not enjoy general acceptance, yes the check can be
collected from the bank, from the balance of the deposit or the account of the drawer
This check, which means that the deposit itself and not the check is considered
money, and the check is no longer in cash, such as paper banknotes which have
the status of public acceptance. It is true that money banking does not have
the status of public acceptance, such as paper money, however, because of the
breadth of economic activity, has become dealing with checks on a large scale
in developed countries, due to the spread of banking awareness, and in many
countries in the less developed world as well, with respect to the commercial
aspects and Government Enterprises , it is natural to find companies are
converting some or doctoring checks, it exported its name to companies or other
entities, in settlement of the debt owed, for example, and so on.
Fourth (4) cash credit
We've mentioned previous examples, this kind of money, and we will talk
about in detail later, but here cite examples of simple and fast, it is
Examples include credit card Credit card different types of cards, such as
automated teller National Express and Visa cards and other Visa Cards.
Fifths (5) electronic money
This kind of money, we talked about it too, but we'll talk about it at
length in the corner, especially later on, but we mention here that evolved
digital technology and information systems, which have transformed the world
into a small village, can now American, which is lying on his bed in New York,
to buy goods from store in China push of a button or click a mouse computer via
the Internet, as well as through electronic means of communication in other
modern transport and circulation of money through electronic devices, smart
phones.
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