PAPER MONEY & COIN/METALLIC MONEY

IN PAKISTAN

Roll no: BBA/2K18/168

Assigned by: Madam Sannober Shaikh
Subject: Money & Banking
Metallic/Coin money
As the human civilization progressed, the only commodities used as means
of exchange became metals such as gold and silver. However, this could
not last for long because these metals have intrinsic value also it was too
dangerous to carry them. Moreover, gold and silver are scarce and need to
be discovered and extracted from earth and these can also become
abundant due to accidental discoveries of ore deposits.

Paper money
Due to the inconvenience and threat offered by the metallic money, paper
money got developed. Modern money or paper money which is used today
has the least intrinsic value. It is now kept, not for its own value, but
because it can be spent to buy whatever a person needs. Money itself does
not give any utility until it parts from us and is used for the things it can buy
at any given point in time. Paper money has various advantages and offers convenience in
terms of a
medium of exchange. It is easily carried and stored. It is made secured by
special engravings to recognize it as real and it cannot be created by
individuals since the authority to create money only lies with the
government.
In the technologically advanced world, money has many forms; bank
money such as cheques and electronic money such as Debit and Credit
cards. Cheque, for example is not itself money but it performs all the
functions of money. All the forms of modern money are widely accepted as
a replacement for cash. Similarly, online payments are also widely used to
make online payments through the internet which are all electronic
transactions hence, the name, electronic money.