HOW THE MONEY DID GET ITS FUNCTİON?

HOW THE MONEY DID GET ITS FUNCTİON?

                Pieces of paper and little, round coins that we are calling money are essential for our daily life today. If we say we continue with our lives by this small toll maybe a bit of an exaggeration but certainly we do not have lied. In recent years, thanks to the great success of bank increased thanks to the use of credit and debit cards have decreased although not missing anything from money function. It sees more value than real value. But the money is an human invention and there is a period where there is no money.

                Previously Egyptians were used object that similar to money. But the money was found by the Lydians in the 7th BC in west of Anatolia. Well, how people were doing shopping? I thing the first thing that comes to mind people shopped by clearing. Yes, before the money people were giving an another property as a response when buying a property. If we compare this practice, undoubtedly negative properties will be more than positive properties. Firstly, every good had hundreds of price cause of there were any unit for evaluate. This was a huge obstacle to the development of trade.  For instance ten apples equaled to eight pears or a jar of molasses or a sack of cotton and its equilibrium varied from region to region. Another challenge of clearing procedure was should be overlapping needs of buyer and seller side. For example, the person who selling apples had to need pears and the person who selling pears had to need apples for shopping. In this situation as natural the trade have not develop and the people have not get reach.

                After this period, people began to use some object to exchange according to where they live and step closer to current monetary phenomenon. In some places, sea shells or wheat mediated shopping.  These are the first object that showing  the distinction of being  a exchanged tool.

                Then people have begin to use the gold and silver as money instead of other objects. Gold and silver that cut  different sizes were used for daily shopping and also surplus of these were saving. Thus money earned function of deposition tool. Humanity used gold and silver as money for a long time.  Of course this system was also weaknesses bu today’s monetary system is approaching.

                Today the money that we are all in hands and our wallet, firstly  appeared in England. Banknote system based on state-guaranteed. So value that on the banknote is secured by the government. This pieces of paper would not be possible buying selling in excess of its value otherwise. Today the money is generated and released by the government. This is called the money supply in the economics. The government keep under control the economy thanks to money supply.

                The economic significance of the money is undoubtedly very large. The money that the protagonist of economic activities is the only object provided people, countries and states getting poor and rich. The money is one of reasons that many major crisis in economic history. We can count thousands of examples that will allow us to understand the importance of money. But in our age there is a more important issue than having money. It is how to use the money. the main topic is that.

               P.S: I am so sorry for my English. It is getting better in time.