InfopediaPk - All Facts in One Site!
  • Home
  • Islamic
    • Islamic Articles >
      • Holy Quran
      • Tafhim-ul-Quran >
        • About Tafhim-ul-Quran
        • Sura No 01 to 15 >
          • 01;Sura Al-Fatiha
          • 02;Sura Al-Baqarah
          • 03;Sura Al-i-Imran
          • 04;Sura An-Nisa
          • 05;Sura Al-Maida
          • 06;Sura Al-An'am
          • 07;Sura Al-A'raf
          • 08;Sura Al-Anfal
          • 09;Sura At-Tawbah "Or" Sura Al-Baraat
          • 10;Sura Yunus
          • 11;Sura Hud
          • 12;Sura Yusuf
          • 13;Sura Ar-Ra'd
          • 14;Sura Ibrahim
          • 15;Sura Al-Hijr
        • Sura No 16 to 30 >
          • 16;Sura An-Nahl
          • 17;Sura Al-Isra "Or" Sura Bani Israil
          • 18;Sura Al-Kahf
          • 19;Sura Maryam
          • 20;Sura Ta Ha
          • 21;Sura Al-Anbiya
          • 22;Sura Al-Hajj
          • 23;Sura Al-Mu’minoon
          • 24;Sura An-Nur
          • 25;Sura Al-Furqan
          • 26;Sura Ash-Shuara
          • 27;Sura Al-Naml
          • 28;Sura Al-Qasas
          • 29;Sura Al-Ankabut
          • 30;Sura Ar-Rum
        • Sura No 31 to 45 >
          • 31;Sura Luqman
          • 32;Sura As-Sajda
          • 33;Sura Al-Ahzab
          • 34;Sura Saba
          • 35;Sura Al-Malaika "Or" Sura Fatir
          • 36;Sura Ya Sin
          • 37;Sura As-Saaffat
          • 38;Sura Sad
          • 39;Sura Az-Zumar
          • 40;Sura Al-Mu'min "Or" Sura Al-Ghafir
          • 41;Sura Ha Mim As Sajdah "Or" Surah Fussilat
          • 42;Sura Ash-Shura
          • 43;Sura Az-Zukhruf
          • 44;Sura Ad-Dukhan
          • 45;Sura Al-Jathiya
        • Sura No 46 to 60 >
          • 46;Sura Al-Ahqaf
          • 47;Sura Mohammad
          • 48;Sura Al-Fath
          • 49;Sura Al-Hujurat
          • 50;Sura Qaf
          • 51;Sura Adh-Dhariyat
          • 52;Sura At-Tur
          • 53;Sura An-Najm
          • 54;Sura Al-Qamar
          • 55;Sura Ar-Rahman
          • 56;Sura Al-Waqia
          • 57;Sura Al-Hadid
          • 58;Sura Al-Mujadilah
          • 59;Sura Al-Hashr
          • 60;Sura Al-Mumtahina
        • Sura No 61 to 75 >
          • 61;Sura As-Saff
          • 62;Sura Al-Jumuah
          • 63;Sura Al-Munafiqun
          • 64;Sura At-Taghabun
          • 65;Sura At-Talaq
          • 66;;Sura At-Tahrim
          • 67;Sura Al-Mulk
          • 68;Sura Al-Qalam\Nun
          • 69;Sura Al-Haqqa
          • 70;Sura Al-Maarij
          • 71;Sura Nuh
          • 72;Sura Al-Jinn
          • 73;Sura Al-Muzzammil
          • 74;Sura Al-Muddathir
          • 75;Sura Al-Qiyama
        • Sura No 76 to 90 >
          • 76;Sura Al-Insan\Ad-Dahr
          • 77;Sura Al-Mursalat
          • 78;Sura An-Naba
          • 79;Sura Al-Naziat
          • 80;Sura Abasa
          • 81;Sura At-Takwir
          • 82;Sura Al-Infitar
          • 83;Sura Al-Mutaffifin
          • 84;Sura Al-Inshiqaq
          • 85;Sura Al-Burooj
          • 86;Sura At-Tariq
          • 87;Sura Al-Ala
          • 88;Sura Al-Ghashiya
          • 89;Sura Al-Fajr
          • 90;Sura Al-Balad
        • Sura No 91 to 100 >
          • 91;Sura Ash-Shams
          • 92;Sura Al-Lail
          • 93;Sura Ad-Dhuha
          • 94;Sura Al-Inshirah
          • 95;Sura At-Tin
          • 96;Sura Al-Alaq
          • 97;Sura Al-Qadr
          • 98;Sura Al-Bayyina
          • 99;Sura Az-Zalzala
          • 100;Sura Al-Adiyat
        • Sura No 101 to 114 >
          • 101;Sura Al-Qaria
          • 102;Sura At-Takathur
          • 103;Sura Al-Asr
          • 104;Sura Al-Humaza
          • 105;Sura Al-Fil
          • 106;Sura Quraysh
          • 107;Sura Al-Ma'un
          • 108;Sura Al-Kawthar
          • 109;Sura Al-Kafirun
          • 110;Sura An-Nasr
          • 111;Sura Al-Masadd
          • 112;Sura Al-Ikhlas
          • 113-114;Sura Al-Falaq & Sura Al-Nas
      • Hadith >
        • Forty Sacred Hadith Qudsi
      • Biography >
        • Brief Biography of Hazrat Mohammad (Peace Be Upon Him)
        • Parents Of Hazrat Muhammad (P.B.U.H)
        • Umm-al-Momineen
        • Daughters Of Hazrat Mohammad (P.B.U.H)
        • Sons Of Mohammad (Peace Be Upon Him)
        • Companions of Prophet Mohammad (Peace Be Upon Him) >
          • Rightly Guided Caliphs >
            • Brief Biography of Abu Bakr As-Siddiq
            • Life of Umar ibn Al-Khattab
            • Life Of Uthman ibn Affan
            • Life of Ali ibn Abi Talib
          • Life of Al-Hussein Ibn Ali Ibn Abi Talib
      • Articles of Faith
      • Pillars of Islam >
        • Sawm\\Fasting In Islam
        • Zakat\\Alms-giving In Islam
        • Hajj\\Pilgrimage In Islam
      • Holiest sites in Islam >
        • Holy Kaaba
        • Al-Masjid Al-Haram
        • Al-Masjid Al-Nabawi
        • Al-Masjid Al-Aqsa
        • Dome Of The Rock
        • Quba Mosque
        • Masjid E-Zil-Qiblatain
        • Umayyad Mosque
        • Great Mosque of Aleppo
        • Imam Ali Mosque
        • Masjid Al-Kufa
        • Khalid Ibn Al-Walid Mosque
        • Imam Husayn Shrine
        • Al-Abbas Mosque
        • Al-Askari Mosque
        • Al-Kadhimiya Mosque
        • Imam Reza Shrine
        • Abu Hanifah Mosque
        • Zamzam Well
      • Festivals and Events >
        • Eid Milad an-Nabi (Peace Be Upon Him)
        • Isra and Miraj
        • Shab-e-Barat
        • Laylat Al-Qadr
        • Eid ul-Fitr
        • Eid ul-Adha
      • Islamic Calendar >
        • About Islamic Calendar
        • 1.Muharram
        • 2.Safar
        • 3.Rabi al-Awwal
        • 4.Rabi al-Thani
        • 5.Jumada al-Awwal
        • 6.Jumada al-Thani
        • 7.Rajab
        • 8.Shaaban
        • 9.Ramadan
        • 10.Shawwal
        • 11.Dhu al-Qidah
        • 12.Dhu al-Hijjah
      • Divine Books In Islam
      • Wonders of Muslim >
        • Wonders Of Muslim (Mosque, Picture hyperlink)
        • 15 World Largest Mosques By Area
        • 15 World Largest Mosques By Capacity
        • Largest Mosque By Country In Terms of Area
        • Largest Mosque By City In Terms of Area
        • In Asia >
          • Middle East >
            • In Saudi Arabia >
              • Al-Masjid Al-Haram
              • Al-Masjid Al-Nabawi
              • Quba Mosque
              • Masjid E-Zil-Qiblatain
            • In Iraq >
              • Imam Ali Mosque
              • Imam Husayn Shrine
              • Al-Abbas Mosque
              • Al-Askari Mosque
              • Abu Hanifah Mosque
              • Al-Kadhimiya Mosque
              • Masjid Al-Kufa
              • Great Mosque of Samarra
            • In Syria >
              • Umayyad Mosque
              • Great Mosque of Aleppo
              • Khalid Ibn Al-Walid Mosque
            • Imam Reza Shrine
            • Al-Masjid Al-Aqsa
            • Sheikh Zayed Grand Mosque
            • Al-Fateh Mosque
            • Saleh Mosque
            • Sultan Qaboos Grand Mosque
            • Grand Mosque of Kuwait
            • Imam Muhammad ibn Abd al-Wahhab Mosque
          • South Asia >
            • Faisal Mosque
            • Badshahi Mosque
            • Wazir Khan Mosque
            • Grand Jamia Mosque
            • Baitul Mukarram
            • Wazir Khan Mosque
            • Shah Jahan Mosque, Thatta
            • Bhong Mosque
            • Mohabbat Khan Mosque
            • Masjid-i Jahan-Numa
            • Jamia Masjid, Srinagar
          • Southeast Asia >
            • Crystal Mosque
            • Istiqlal Mosque
            • Jame Asr Hassanil Bolkiah Mosque
            • National Mosque of Malaysia
            • Putra Mosque
            • Sultan Salahuddin Abdul Aziz Shah Mosque
            • Sultan Omar Ali Saifuddin Mosque
          • East Asia >
            • Id Kah Mosque
            • Great Mosque of Guangzhou
            • Taipei Grand Mosque
            • Kowloon Mosque and Islamic Centre
          • Central Asia >
            • Nur-Astana Mosque
            • Bibi-Khanym Mosque
        • In Africa >
          • Abu Al-Abbas Al-Mursi Mosque
          • Al-Azhar Mosque
          • Al-Zaytuna Mosque
          • Great Mosque of Djenne
          • Hassan II Mosque
          • Koutoubia Mosque
          • Mosque of Ahmad Ibn Tulun
          • Mosque of Amr Ibn Al-As
          • Mosque of Muhammad Ali Pasha
          • Mosque of Uqba
          • Uganda National Mosque
        • In America & Europe >
          • King Fahd Islamic Cultural Center
          • Sabancı Merkez Camii
          • Glasgow Central Mosque
          • Blue Mosque
          • Mosque of Rome
          • Qolsharif Mosque
          • Kocatepe Mosque
      • Wonder Of Muslims (Fort,Palace)
    • Islamic Pictorial >
      • Verse from the Holy Quran
      • Saying of The Prophet Mohammad
      • Wise Words
      • The Six Kalimas
      • Masnoon Dua
      • Sisala Azkar Masonna
      • Life of Mohammad (Peace Be Upon Him)
      • Notes
    • Islamic Videos >
      • Verse from the Holy Quran
      • Saying of The Prophet Mohammad
      • Hamds and Naats
    • Islamic Sounds
    • Islamic Wallpapers >
      • Bismillah
      • Kalma Tayyaba
      • Allah
      • Mohammad Peace Be Upon Him
      • Eid ul-Fitr
      • Lailat al-Baraa
      • Hajj
      • Ramadan
  • World
    • Articles >
      • Geography >
        • Continents of the World >
          • About Continents
          • Asia
          • Africa
          • North America
          • South America
          • Antarctica
          • Europe
          • Oceania
        • New Seven Wonders of Nature
        • Earth's Oceans
        • Biggest Bodies Of Water....After Ocean
        • Longest Mountain Ranges Of The World
        • 10 Highest Mountains
        • Seven Summits
        • Volcanic Seven Summits
        • Eight Lowest Points On Earth
        • Lowest Point By Continent (Below Sea Level)
        • Longest River By Continent
        • Largest Lakes by Continent
        • Biggest Desert In The World
      • International Organizations and Groups >
        • International Organizations >
          • United Nations (UNO)
          • Organisation of Islamic Cooperation (OIC)
          • Interpol
        • Regional Organizations >
          • Arab League
          • OPEC (Organization of Petroleum Exporting Countries)
          • South Asian Association for Regional Cooperation (SAARC)
          • Commonwealth of Nations
          • Association of Southeast Asian Nations (ASEAN)
          • Economic Cooperation Organization (E.C.O)
          • Shanghai Cooperation Organisation (SCO)
      • Extreme Engineering >
        • Seven Wonders of the Ancient World
        • New Seven Wonders of the World
        • Biggest,Largest Structures In World----Man Made
        • Tallest Structures In The World ---- Man Made
      • House of Records >
        • Biggest Bodies Of Water....After Ocean
        • Longest Mountain Ranges Of The World
        • 10 Highest Mountains
        • Seven Summits
        • Volcanic Seven Summits
        • Eight Lowest Points On Earth
        • Lowest Point By Continent (Below Sea Level)
        • Longest River By Continent
        • Largest Lakes by Continent
        • Biggest Desert In The World
        • Top 10 Largest Countries By Area
        • Top 10 Smallest Countries By Area
        • Top 10 Most Populated Countries
        • Top 10 Most Less Populated Countries
        • Biggest,Largest Structures In World----Man Made
        • Tallest Structures In The World-------Man Made
      • Festivals and Events >
        • Valentine's Day
        • International Mother Language Day
        • International Women's Day
        • Earth Hour
        • April Fools' Day
        • International Workers' Day
        • Mother's Day
        • World No Tobacco Day
        • Father's Day
        • International Friendship Day
        • Cricket World Cup
        • Summer Olympic Games
      • National Symbols >
        • National Trees
        • National Fruits
        • National Sport
        • National Birds
      • World languages >
        • Arabic
        • Balochi
        • Pashto
        • Punjabi
        • Sindhi
        • Urdu
      • Games And Sports >
        • Archery
        • Badminton
        • Cricket
        • Weightlifting
      • Scouting >
        • Boy Scouts
        • Girl Guides
      • Days and Months >
        • Days of the Week
        • April In History?
        • May In History
        • Calendar >
          • Islamic Calendar >
            • About Islamic Calendar
            • 1.Muharram
            • 2.Safar
            • 3.Rabi al-Awwal
            • 4.Rabi al-Thani
            • 5.Jumada al-Awwal
            • 6.Jumada al-Thani
            • 7.Rajab
            • 8.Shaaban
            • 9.Ramadan
            • 10.Shawwal
            • 11.Dhu al-Qidah
            • 12.Dhu al-Hijjah
          • Gregorian Calendar >
            • About Gregorian Calendar
            • 1.January
            • 2.February
            • 3.March
            • 4.April
            • 5.May
            • 6.June
            • 7.July
            • 8.August
            • 9.September
            • 10.October
            • 11.November
            • 12.December
      • The Solar System (Planets & Dwarf Planets)
      • Introduction and History Of Money
    • Pictorial Series >
      • Did You Know?
      • Wise Words
      • Landscape & Landmark
    • Videos >
      • Did You Know?
      • Universe
      • Human Body
  • Pakistan
    • Articles >
      • Geographical >
        • 5 Highest Peaks In Pakistan
        • Rivers In Pakistan
        • Deserts Of Pakistan
        • Lakes In Pakistan
      • Cities In Pakistan >
        • Islamabad
        • Karachi
        • Lahore
        • Quetta
        • Peshawar
        • Faisalabad
        • Multan
        • Murree
      • Places of Interest >
        • Mosque >
          • Faisal Mosque
          • Badshahi Mosque
          • Grand Jamia Mosque
          • Wazir Khan Mosque
          • Shah Jahan Mosque, Thatta
          • Bhong Mosque
          • Mohabbat Khan Mosque
        • Mausoleum >
          • Tomb of Jahangir
          • Tomb of Nur Jahan
          • Mazar-e-Quaid
          • Tomb of Allama Mohammad Iqbal
        • Walled City of Lahore
        • Pakistan Monument
        • Minar-e-Pakistan
        • Lahore Fort
        • Iqbal Manzil
        • Shalimar Gardens
        • Hiran Minar
      • Languages of Pakistan >
        • Urdu
        • Punjabi
        • Sindhi
        • Pashto
        • Balochi
      • Mode of Transport >
        • Motorways of Pakistan
        • Karakoram Highway
        • Grand Trunk Road "Or" GT Road
      • National Events >
        • Lahore Resolution
        • Pakistan Day
        • Youm-e-Takbir
        • Pakistan's Independence Day
        • Defence Day
      • Scouting In Pakistan >
        • Scout
        • Girl Guide
      • Nishan-e-Haider
      • National Symbols of Pakistan
      • Pakistani Currency
      • Guinness Book of World Records In Sport By Pakistan
    • Pakistani Videos
  • Links
  • Feedback
  • Site Map
  • InfopediaPk blog

Introduction and History Of Money

Picture
Money is anything that is generally accepted as payment for goods and services and repayment of debts.The main functions of money are distinguished as: a medium of exchange, a unit of account, a store of value, and occasionally, a standard of deferred payment.
Money originated as commodity money, but nearly all contemporary money systems are based on fiat money.Fiat money is without value as a physical commodity, and derives its value by being declared by a government to be legal tender; that is, it must be accepted as a form of payment within the boundaries of the country, for "all debts, public and private".
The money supply of a country consists of currency (banknotes and coins) and demand deposits or 'bank money' (the balance held in checking accounts and savings accounts). These demand deposits usually account for a much larger part of the money supply than currency.Bank money is intangible and exists only in the form of various bank records. Despite being intangible, bank money still performs the basic functions of money, being generally accepted as a form of payment.
The word "money" is believed to originate from a temple of Hera, located on Capitoline, one of Rome's seven hills. In the ancient world Hera was often associated with money. The temple of Juno Moneta at Rome was the place where the mint of Ancient Rome was located.The name "Juno" may derive from the Etruscan goddess Uni (which means "the one", "unique", "unit", "union", "united") and "Moneta" either from the Latin word "monere" (remind, warn, or instruct) or the Greek word "moneres" (alone, unique).
In the Western world, a prevalent term for coin-money has been specie, stemming from Latin in specie, meaning 'in kind'.

History of Money 

1.Barter

Picture
showing a man engaging in barter: offering chickens in exchange for his yearly newspaper subscription.
The first people didn't buy goods from other people with money. They used barter. Barter is the exchange of personal possessions of value for other goods that you want. This kind of exchange started at the beginning of humankind and is still used today. From 9,000-6,000 B.C., livestock was often used as a unit of exchange. Later, as agriculture developed, people used crops for barter. For example, I could ask another farmer to trade a pound of apples for a pound of bananas.

2.Shells

Picture
Chinese shell money
At about 1200 B.C. in China, cowry shells became the first medium of exchange, or money. The cowry has served as money throughout history even to the middle of this century. 

3.First Metal Money

Picture
Weapon use as money in china in 1000 B.C
China, in 1,000 B.C., produced mock cowry shells at the end of the Stone Age. They can be thought of as the original development of metal currency. In addition, tools made of metal, like knives and spades, were also used in China as money. From these models, we developed today's round coins that we use daily. The Chinese coins were usually made out of base metals which had holes in them so that you could put the coins together to make a chain.


4.Coins

Picture
Lydian electrum coin (or badge) (one-third stater denomination) minted ca. 600 BC
At about 600-650 B.C., pieces of silver were the earliest coins. Eventually in time they took the appearance of today and were imprinted with numerous gods and emperors to mark their value. These coins were first shown in Lydia, or Turkey, during this time, but the methods were used over and over again, and further improved upon by the Greek, Persian, Macedonian, and Roman empires. Not like Chinese coins, which relied on base metals, these new coins were composed from scarce metals such as bronze, gold, and silver, which had a lot of intrinsic value.

5.Leather Currency

Picture
In 118 B.C., banknotes in the form of leather money were used in China. One-foot square pieces of white deerskin edged in vivid colors were exchanged for goods. This is believed to be the beginning of a kind of paper money.

6.Noses

Picture
People Of Ireland used nose as money
During the ninth century A.D., the Danes in Ireland had an expression "To pay through the nose." It comes from the practice of cutting the noses of those who were careless in paying the Danish poll tax.

7.Paper Currency

Picture
Song Dynasty Jiaozi, the world's earliest paper money
From the seventh century to the fifteenth century A.D., in China, the first actual paper currency was used as money. Through this period the amount of currency skyrocketed causing severe inflation. Unfortunately, in 1455 the use of the currency vanished from China. European civilization still would not have paper currency for many years.


8.Potlach

Picture
North American Indians engaged in potlach
In 1500, North American Indians engaged in potlach, a term that describes the exchange of gifts at banquets, dances, and various rituals. Since the trading of gifts was so important in figuring the leaders’ community status, potlach went out of control as the gifts became more extravagant in an effort to surpass others' gifts.

9.Wampum

Picture
Wampum are used by North American Indians as money
In 1535, though likely well before this earliest recorded date, strings of beads made from clam shells, called wampum, are used by North American Indians as money. Wampum means white, the color of the clam shells and the beads.

10.Gold Standard

Picture
1 kg gold bar
In 1816, England made gold a benchmark of value. This meant that the value of currency was pegged to a certain number of ounces of gold. This would help to prevent inflation of currency. The U.S. went on the gold standard in 1900.

11.Depression

Picture
Because of the depression of the 1930's, the U.S. began a world wide movement to end tying currency to gold. Today, few nations tie the value of their currency to the price of gold. Other government and financial institutions now try to control inflation.

12.Today

Picture
Obverse of the Series 2003A $100 bill
At present, nations continue to change their currencies. For example, the U.S. has already changed its $100 and $20 banknotes. More changes are in the works.

13.Tomorrow

Picture
Online Banking
Tomorrow is already here. Electronic money (or digital cash) is already being exchanged over the Internet.

Summary

The use of barter-like methods may date back to at least 100,000 years ago, though there is no evidence of a society or economy that relied primarily on barter.Instead, non-monetary societies operated largely along the principles of gift economics. When barter did occur, it was usually between either complete strangers or potential enemies.
Many cultures around the world eventually developed the use of commodity money. The shekel was originally both a unit of currency and a unit of weight.The first usage of the term came from Mesopotamia circa 3000 BC. Societies in the Americas, Asia, Africa and Australia used shell money – usually, the shell of the money cowry (Cypraea moneta) were used. According to Herodotus, and most modern scholars, the Lydians were the first people to introduce the use of gold and silver coin.It is thought that these first stamped coins were minted around 650–600 BC.
The system of commodity money eventually evolved into a system of representative money.This occurred because gold and silver merchants or banks would issue receipts to their depositors – redeemable for the commodity money deposited. Eventually, these receipts became generally accepted as a means of payment and were used as money. Paper money or banknotes were first used in China during the Song Dynasty. These banknotes, known as "jiaozi" evolved from promissory notes that had been used since the 7th century. However, they did not displace commodity money, and were used alongside coins. Banknotes were first issued in Europe by Stockholms Banco in 1661, and were again also used alongside coins. The gold standard, a monetary system where the medium of exchange are paper notes that are convertible into pre-set, fixed quantities of gold, replaced the use of gold coins as currency in the 17th-19th centuries in Europe. These gold standard notes were made legal tender, and redemption into gold coins was discouraged. By the beginning of the 20th century almost all countries had adopted the gold standard, backing their legal tender notes with fixed amounts of gold.
After World War II, at the Bretton Woods Conference, most countries adopted fiat currencies that were fixed to the US dollar. The US dollar was in turn fixed to gold. In 1971 the US government suspended the convertibility of the US dollar to gold. After this many countries de-pegged their currencies from the US dollar, and most of the world's currencies became unbacked by anything except the governments' fiat of legal tender.
Powered by Create your own unique website with customizable templates.