What is Money?
Money is referred to as a common medium of exchange or trade. It's known as "legal tender" for the exchange of goods and services between two parties. It now is used across most of the word and is government issued.
Where did Money Come From?
Looking back into history, there is evidence that suggest money has been around since 5000 B.C. Around 700 B.C., the first minted coin was introduced by the Lydians. These coins were created from metal due to the easy access and how easy metal was to work with. They were given value, which made it easier to trade goods and services.
While coins were created early, paper money eventually made its way into the world. Some of the earliest paper money is believed to be created around AD 960 in China.
Money in America
In the old days (many centuries ago), many people exchanged goods and services for other various goods and services, also known as trading or bartering. Then, in 1862 in the United States, money in the form of paper was first issued. Demoninations were $5, $10 and $20. Due to the Act of March 17, 1862, money officially become legal tender, which laid the bartering system to rest.
Money in America has made quite the change since it was first introduced. All paper money is now made of cotton fiber paper, unlike most paper (which is made from wood fibers). This was done to help money last longer, both in circulation and to prevent it from breaking down or wilting away like traditional paper can.
Common denominations of paper money in America are $1, $2, $5, $10, $20, $50 and $100. Bills that were larger than $100 have been printed in the past, but are no longer used today. They were primarily for bank to bank transfers.
When it comes to coins, the common demoniations of coins in America are:
- Penny (1 cent)
- Nickel (5 cents)
- Dime (10 cents)
- Quarter (25 cents)
- Half Dollar (50 cents)
- Dollar Coin (1 dollar)
Money in the World
When it comes to international currency, money is everywhere. Every country in the world has a unique currency system, and while some countries have similar systems in place, no two are really the same (one exception are European countries, which recently introduce the "Euro" currency system that is now used in 22 countries in Europe).
In addition to different currency systems, money also is valued differently in each country, often due to a variety of factors (such as standards of living, inflation, current economic conditions, etc). With that said, money in one country can be more valuable than in another. You can compare values of money in different countries by looking at foreign currency rates.
Differences in foreign currency rates have also created a popular trend in what is known as currency trading. Many people trade foreign money much like the stock market trading that goes on here in America.
As you can see, money plays an important role in every country's economy, as well as the citizens who reside in it. Money will forever remain the main tender used to trade/puchase goods and services. While this is a brief overview of money, there is a lot more to learn about the power behind it. It's an entire complex subject all in itself that can take years to learn and understand. And even then, money may still be a mystery.