Generally the word currency denotes conins and paper notes issued by a government for buying an article. Today currency forms the basis of all the trade in the world.
In the beginning of the civilisation, whenever somebody wanted to buy anything, he would barter it with food grains, tobacco, hides, salt etc. In villages and under-developed countries this system is still prevailing. It is known as barter economy. Such a system used to cause lot of inconvenience to people. Thus, to overcome this difficulty, man started using gold and silver bars. However, it was not possible to determine the purity and value of these metals.
Around 700 B.C, King Gaijes of Lydia (today's Turkey) started coins' circulation made from an alloy named 'electrum'. This consisted of 25% of silver and seventy-five percent gold. These coins were shaped like beans. And when Greeks came across these coins, they found them very useful in their day-to-day business. They also started using such coins. In a very short period, this systembecame popular in many countries of the world. Later, gold and silver coins were replaced by copper coins.
The use of coins solved many problems, but their use in larger quantity proved inconvenient because of their weight. As a result, currency notes were invented. The Chinese were the first to use paper currency. They started its circulation around 119 years B.C. The notes were circulated bya a bank which used to guarantee the payment of the amount mentioned on these notes. In the modern time Stockholm's Bank of Sweden was the first to issue currency notes in July 1661. Today along with notes, even cheques have come into use. In this way, facilities for monetary exchange have considerably improved. In India the first note was printed during Sher Shah Suri's reign.
In the beginning of the civilisation, whenever somebody wanted to buy anything, he would barter it with food grains, tobacco, hides, salt etc. In villages and under-developed countries this system is still prevailing. It is known as barter economy. Such a system used to cause lot of inconvenience to people. Thus, to overcome this difficulty, man started using gold and silver bars. However, it was not possible to determine the purity and value of these metals.
Around 700 B.C, King Gaijes of Lydia (today's Turkey) started coins' circulation made from an alloy named 'electrum'. This consisted of 25% of silver and seventy-five percent gold. These coins were shaped like beans. And when Greeks came across these coins, they found them very useful in their day-to-day business. They also started using such coins. In a very short period, this systembecame popular in many countries of the world. Later, gold and silver coins were replaced by copper coins.
The use of coins solved many problems, but their use in larger quantity proved inconvenient because of their weight. As a result, currency notes were invented. The Chinese were the first to use paper currency. They started its circulation around 119 years B.C. The notes were circulated bya a bank which used to guarantee the payment of the amount mentioned on these notes. In the modern time Stockholm's Bank of Sweden was the first to issue currency notes in July 1661. Today along with notes, even cheques have come into use. In this way, facilities for monetary exchange have considerably improved. In India the first note was printed during Sher Shah Suri's reign.
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