AFRICA INTERNATIONAL UNIVERSITY

SCHOOL OF BUSINESS ECONOMICS

JEMIMA WANJIRU KIMANI

GS190419BAFM

AF212
JULIUS KIRUI

ASSIGNMENT; What do you mean by evolution of money and

what is next form of medium of exchange? Discuss.

Evolution of money is where money went through a long way before advancing to a digital currency that
include modern banking system with the convenience of paper money we use today. It started with
barter system to commodity money to precious metals like gold, silver and copper to paper money.

Money as a medium of exchange money helps to facilitate trade, it’s a medium of exchange because
buyers and sellers agree to its common value. The next form of medium of exchange will be determined
with the economic state that we will be at that time and that will be reliable and acceptable to the
community. Physical money and large notes are somehow paving way for the digital currency which will
soon be accepted and used worldwide.