Old Money

pictures of ancient paper money

The money that we know today has undergone a long development process. At first, people are not familiar with the exchange because each person trying to meet with business needs own. Humans hunting if he was hungry, making their own clothing from materials that are simple, find the fruit for their own consumption; in short, what is obtained which is used to meet their needs.



Further development of human facing on the fact that what is produced alone was not sufficient for the needs meet. To obtain the goods can not produce themselves, they look for people who want to exchange goods owned by other goods needed by it. The result comes barter system, the exchange of goods with goods.

The money is divided according to the material it is made into two, namely coins and paper money.

pictures of ancient coins

Coin is the money made from metal, usually gold or silver because these two metals that have higher value and tend to be stable, easily recognizable shape, nature is not easily destroyed, durable, and can be divided into smaller units without reducing the value .

Coin has three kinds of values:

• Intrinsic value, the value of materials to create a currency, such as how the value of gold and silver are used for currency.
• Nominal value, the value listed in a currency or a cap price listed on the currency.
• The exchange rate, exchange rate is the ability of money to be exchanged for a product (purchasing power of money).