Evolution of Money

Types of Money; Evolution of Money; What is evolution of money

Due to inconveniences of barter system, the need for introducing something as a medium of exchange arise. The development of money has passed through various stages in accordance with time, place and circumstances with the progress of civilization of mankind.

The different types of money are explained in brief as follows:-
Animal Money:
In the hunting stage, animals were used as money. Various cattle like cows, goats etc. were used as money. This money has certain drawbacks like indivisibility, lack of storability, lack of portability and lack of standardization.

Commodity Money:
Various commodities like shells, skins, rice, tea etc were used as money in some places. People living near sea shore used shells, fish etc as a medium of exchange. This money has certain limitations like lack of uniformity, portability, indivisibility etc.

Metallic Money:
Metals like gold, silver, copper, bronze were used as money. It lacks uniformity, portability and difficult to count small pieces of coins for big transactions.

Metallic Coins:
In order to overcome the difficulties of metallic money, coins were introduced in 700 B.C in Greece. Coins bearing the king's stamp were used. It also had certain disadvantages like lack of transferability, unsafe to carry, difficulty of counting and lack of availability of coins etc.

Paper Money:
After Industrial Revolution, paper money was invented. Paper money emerged as token money. Paper notes were issued by the Government. It was economical and portable compared to metallic money. It has certain limitations like lack of durability, difficulty in handling big amounts, could not be used for international trade etc.

Bank Money:
To supplement paper money a new type of money known as bank money or credit money was created by banks. It is in the form of checks, drafts, bills of exchange. It is accepted as legal tender money. It is safe and convenient and is used in the present economy for all transactions.

Related Articles

Qualities needed to make money honestly

The importance of money in daily life, the problems created by the money and everything which should be known by everyone about money is described in this article. This article will help you to understand everything about money.

Money - most important part of our life

This article gives information about money. It tells how to earn money by good ways? This article gives few tips related to money. It tells how to consume money? It tells how to enjoy life with the help of money? It tells how to save money?

Whether the plastic money is an asset or a liability?

This article warns you of the dangers of plastic money, its advantages and disadvantages. The use of plastic money no matter has freed us from the bother of carrying cash but cautions are needed in its use. Carelessness in its case might land you in great troubles

Tips for Earning Money while Studying

This article gives tips about earning money even when you are studying. Earning money while learning and studying helps you in many things. They can as small as your your everyday Tea and breakfast money to huge amounts to cover your college tuition fees.

Making Quick Money Tips & Schemes

Have you ever found out about people or even you losing money to people who play tricks with you and dupe you of your hard earned money in empty promises? Check this resource to find out how people get pulled into such schemes and get you duped in no time.

More articles: Money Money


  • Do not include your name, "with regards" etc in the comment. Write detailed comment, relevant to the topic.
  • No HTML formatting and links to other web sites are allowed.
  • This is a strictly moderated site. Absolutely no spam allowed.
  • Name: