ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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banks can issue their own legal tender
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paper money is backed by gold
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money is no longer needed
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some cultures still measure their wealth in animals
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Detailed explanation-1: -The First Monetary Currencies of the World The first known use was in Lydia, an Iron Age kingdom located in an area that is now western Turkey. The Lydians used electrum, a naturally occurring alloy of gold and silver with trace amounts of other metals, which they stamped and used as the first known coins.
Detailed explanation-2: -The need to facilitate exchange of goods led to the evolution of money. The world went through a stage when money was not in use and goods were exchanged directly for one another, in a system called the barter. The inconveniences and drawbacks of barter led to the gradual use of a medium of exchange.
Detailed explanation-3: -It wasn’t until about 5, 000 years ago that the Mesopotamian people created the shekel, which is considered the first known form of currency. Gold and silver coins date back to around 650 to 600 B.C. when stamped coins were used to pay armies. Some evidence suggests that metal coins may be as old as 1250 B.C.
Detailed explanation-4: -While the use of metal for money can be traced back to Babylon before 2000 BCE, standardized and certified coinage may not have existed until the 7th century BCE. According to many historians, it was during this time that the kingdom of Lydia (in present-day Turkey) issued the first regulated coins.