ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Paper money was invented in China in the 7th century, but the base unit of currency remained the copper coin. Copper coins were used as the chief denomination of currency in China until the introduction of the yuan.

Detailed explanation-2: -History. Paper currency first developed in Tang dynasty China during the 7th century, although true paper money did not appear until the 11th century, during the Song dynasty. The use of paper currency later spread throughout the Mongol Empire or Yuan dynasty China.

Detailed explanation-3: -Song Dynasty Jiaozi, the world’s earliest paper money. “In the 600s there were local issues of paper currency in China and by 960 the Song Dynasty, short of copper for striking coins, issued the first generally circulating notes.

Detailed explanation-4: -First paper money was introduced in medieval China in the late 10th century during the rule of the Song dynasty (960-1279). A sophisticated system of production, issue and withdrawal was gradually developed to an admirable perfection achieved during the Mongol Yuan dynasty (1260-1368).