REACTION PAPER - MONEY AND ITS EVOLUTION

Money is the most significant contemporary innovation. It has gone through a

long period of historical development. People lived in a time when money was not used

and products were exchanged directly for one another. Barter Exchange was the name

given to this type of exchange of commodities for goods.

Due to the inconvenient and disadvantages of barter, a means of exchange was

gradually adopted. Seashells, pearls, precious stones, tea, tobacco, cattle, leather,

fabric, salt, wine, and other commodities have all been utilized as a means of trade

throughout the history of money. It's known as Commodity Money. Due to the

inadequacy of commodity money, metallic money evolved (gold and silver). The issue of

precious metal purity and weight consistency led to private and public coinage. This

procedure was eventually taken over by the state as one of its most important elements,

and commodity money gave way to Paper Money, or currency notes. Paper money, as

well as coins made of copper, bronze, or nickel, are nearly universally used nowadays.

The search for a more suitable medium of trade is currently ongoing. Even paper money

became inconvenient as the volume of transactions expanded due to the time

necessary to count it and the space required to keep it secure. As a result, Bank Money

(or credit money) was introduced in the form of checks, drafts, bills of exchange, credit

cards, and so on. Plastic money in the form of debit cards is becoming increasingly

common these days. As a result, bank money has become the most essential kind of

money in contemporary times, as it is not only incredibly easy for big payments, but it

also removes hazards and is long-lasting.

People frequently claim that they can survive without money. Money is defined

as one of the tools that improves people's living conditions. Money, on the other hand, is

a highly crucial factor in people's lives in real life. Although individuals in the past may

have survived by exchanging things rather than relying on the value of money, modern

civilization could not operate without it.