History of money Paper currency first developed in Tang Dynasty China during the 7th century, although true paper money did not appear until the 11th century, during the Song Dynasty. European explorers like Marco Polo introduced the concept in Europe during the 13th century. The perception of banknotes as money has evolved over time. Originally, money was based on precious metals.
History of money Paper currency first developed in Tang Dynasty China during the 7th century, although true paper money did not appear until the 11th century, during the Song Dynasty. The usage of paper currency later spread throughout the Mongol Empire.
European explorers like Marco Polo introduced the concept in Europe during the 13th century. The perception of banknotes as money has evolved over time. Originally, money was based on precious metals. Banknotes were seen by some as an I. With the removal of precious metals from the monetary system, banknotes evolved into pure fiat money.
List of Chinese inventionsEconomy of the Song Dynastyand Jiaozi currency Development of the banknote began in the Tang Dynasty during the 7th century, with local issues of paper currency, although true paper money did not appear until the 11th century, during the Song Dynasty.
Several coins could be strung together on a rope. Merchants in China, if they became rich enough, found that their strings of coins were too heavy to carry around easily.
To solve this problem, coins were often left with a trustworthy person, and the merchant was given a slip of paper recording how much money they had with that person. If they showed the paper to that person, they could regain their money.
Eventually, the Song Dynasty paper money called " jiaozi " originated from these promissory notes. By the Song Dynastyshort of copper for striking coins, issued the first generally circulating notes.
A note is a promise to redeem later for some other object of value, usually specie. The issue of credit notes is often for a limited duration, and at some discount to the promised amount later.
The jiaozi nevertheless did not replace coins during the Song Dynasty; paper money was used alongside the coins. The central government soon observed the economic advantages of printing paper money, issuing a monopoly right of several of the deposit shops to the issuance of these certificates of deposit.
Even before this point, the Song government was amassing large amounts of paper tribute. For the printing of paper money alone, the Song court established several government-run factories in the cities of Huizhou ,[ which?
The original notes during the Yuan Dynasty were restricted in area and duration as in the Song Dynasty, but in the later course of the dynasty, facing massive shortages of specie to fund their ruling in China, they began printing paper money without restrictions on duration.
The Venetian merchants were impressed by the fact that the Chinese paper money was guaranteed by the State. European explorers and merchants[ edit ] According to a travelogue of a visit to Prague in by Ibrahim ibn Yaqubsmall pieces of cloth were used as a means of trade, with these cloths having a set exchange rate versus silver.
In the beginning these were personally registered, but they soon became a written order to pay the amount to whoever had it in their possession.
These notes are seen as a predecessor to regular banknotes by some but are mainly thought of as proto bills of exchange and cheques.
In the 14th century, it was used in every part of Europe and in Italian city-state merchants colonies outside of Europe.
For international payments, the more efficient and sophisticated bill of exchange "lettera di cambio"that is, a promissory note based on a virtual currency account usually a coin no longer physically existingwas used more often.
All physical currencies were physically related to this virtual currency; this instrument also served as credit. Birth of European banknotes[ edit ] The first paper money in Europe, issued by the Stockholms Banco in The goldsmith -bankers of London began to give out the receipts as payable to the bearer of the document rather than the original depositor.
This meant that the note could be used as currency based on the security of the goldsmith, not the account holder of the goldsmith-banker. This pivotal shift changed the simple promissory note into an agency for the expansion of the monetary supply itself.
As these receipts were increasingly used in the money circulation system, depositors began to ask for multiple receipts to be made out in smaller, fixed denominations for use as money.Chapter 10 Ap Psych Notes Essay Chapter 10 – Thinking and Language Outline Thinking • Cognition refers to al the mental activities associated with processing, understanding, remembering and communicating • Cognitive psychologists study the mental activities Concepts • Concepts refers to the mental grouping of similar objects, events and.
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A banknote (often known as a bill, paper money, or simply a note) is a type of negotiable promissory note, made by a bank, payable to the bearer on vetconnexx.comtes were originally issued by commercial banks, who were legally required to redeem the notes for legal tender (usually gold or silver coin) when presented to the chief cashier of the originating bank.
A banknote (often known as a bill, paper money, or simply a note) is a type of negotiable promissory note, made by a bank, payable to the bearer on vetconnexx.comtes were originally issued by commercial banks, who were legally required to redeem the notes for legal tender (usually gold or silver coin) when presented to the chief cashier of the .
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