5 Simple Statements About Money Explained
5 Simple Statements About Money Explained
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In 1875, the British economist William Stanley Jevons explained the money utilized at some time as "representative money". Representative money is money that is made of token coins, paper money or other Actual physical tokens such as certificates, that may be reliably exchanged for a hard and fast quantity of a commodity for instance gold or silver.
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Song Dynasty Jiaozi, the whole world's earliest paper money The technique of commodity money at some point evolved into a method of agent money.[citation essential] This occurred because gold and silver retailers or banking institutions would problem receipts to their depositors, redeemable with the commodity money deposited. At some point, these receipts became commonly acknowledged as a means of payment and ended up used as money. Paper money or banknotes have been to start with Utilized in China over the Track dynasty. These banknotes, called "jiaozi", developed from promissory notes that were utilised since the seventh century. Nonetheless, they didn't displace commodity money and had been utilised alongside cash. In the 13th century, paper money turned identified in Europe in the accounts of travellers, including Marco Polo and William of Rubruck.
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