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History and Types of Money

Money has taken many forms throughout history, beginning with barter and eventually evolving to coins, paper money, cards, and digital currencies. It serves four main purposes: as a medium of exchange, a standard of value, a store of value, and a standard for deferred payment. The supply of money impacts issues like inflation and deflation, and countries implement different monetary systems tied to commodities or other currencies.

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Ella Placido
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104 views2 pages

History and Types of Money

Money has taken many forms throughout history, beginning with barter and eventually evolving to coins, paper money, cards, and digital currencies. It serves four main purposes: as a medium of exchange, a standard of value, a store of value, and a standard for deferred payment. The supply of money impacts issues like inflation and deflation, and countries implement different monetary systems tied to commodities or other currencies.

Uploaded by

Ella Placido
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Money: Unit of Exchange

Introduction:
It was said that money is the root cause of all evil. I
believe otherwise. Money, in itself, isn’t evil- but the love
for it- or rather, the too much love for it is. It wouldn’t be
bad if we were to use it as it is meant to be used- an essential
thing in life, not a necessity.

Money in the Spanish Era:


Money was first introduced in the form of barter. After that,
several different kinds of money were introduced- coins, were the
first- take the piloncitos, and the barilla as an example. The
isabelinas which were coins that began to appear in the 1800s, were
minted regularly. Shortly after that, then-president Aguinaldo
introduced the use of paper currency, until the second world war
brought in Japanese currency and military notes that held little to
no value- these were called the Mickey Mouse Money.
The Central Bank of the Philippines implemented a new monetary
policy after the independence on the 4th of July, 1946, a time before
which then started a new era of monetary currency as Bangko Sentral
ng Pilipinas replaced the former central bank. The BSP, then, was
responsible for stabilizing the Philippine Peso so that it will be an
acceptable medium of exchange here and abroad.

Types of Money:
1. Goods and Services (barter)
2. Metallic Money (coins)
3. Paper Money (bills and cheques)
4. Card Money (credit and debit cards)
5. Cellphone Money (load)
Uses of Money
1. Medium of exchange
- money is used in exchange to get something that we really
need
2. Standard of value
- it gives value to other goods; Example, a P100 pen is held
at a higher value than a P20 pen.
3. Store of value
- when we ‘put away money’ or store it for later use, it will
still be valuable because it has a store of value in it
4. Standard of deferred payment
- or credit as we call it. Best example of this is a credit
card.
Problems of Money Supply:
 Inflation
- means you pay more money for a product because the value of
money is decreasing.
 Deflation
- The value of money increases while the prices fall.
- means your money today will be worth more later.

Monetary Systems
-Monetary System or monetary standard means the kind of money
used in a particular country.
1. Commodity Standard
- Money used is based on silver and gold. In this system, a
country with large reserves of precious metals is considered
rich.
2. Paper Standard
- The issuing country pegs their currency to another country’s
currency. The country is no longer dependent on its amount
of golds and silver.

**discuss exchange rates**

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