Currency is a universal exchange substitute that has gradually evolved in order to facilitate the exchange process in the process of barter exchange.
The history of human use of currency originated from the era of barter. In primitive societies, people used barter to exchange the materials they needed, such as a sheep for a stone axe.
However, sometimes due to restrictions on the types of materials used for exchange, we have to find an item that is acceptable to both parties in the exchange. This item is the most primitive currency. Livestock, salt, rare shells, rare bird feathers, gems, sand gold, stones and other items that are not easy to obtain in large quantities have all been used as currency.
Extended information:
Types of currency
1. Coin
Coin is a small denomination of auxiliary currency. It is made of copper, aluminum or nickel.
2. Paper money
Paper money is a legal tender, called legal tender. Fiat currency is currency that is forced into circulation by the government. The basic power to issue banknotes belongs to the government, specifically the central bank. The sum of notes and coins is called currency or cash.
3. Deposit currency
Deposit currency refers to demand deposits of commercial banks that can be withdrawn at any time. It is also called demand deposit. Since demand deposits can be converted into cash at any time, there is no difference between a bank's demand deposits and currency. It is also a currency.
4. Savings deposits
Time deposits and savings deposits are deposits that can earn interest after a certain period of time. Although these deposits cannot be used by writing checks, they can usually be converted into cash by notifying the bank in advance.
In addition, the negotiable withdrawal orders (NOW) and automatic transfer services (ATS) that have appeared since the 1970s have narrowed the difference between time deposits and demand deposits. The result of this narrowing of differences is that time deposits and savings deposits also become a kind of currency.
Baidu Encyclopedia-Currency