ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Chinese Paper Currency. Paper money was first invented by the Chinese in the 7th century A.D. as a way of simplifying larger monetary transactions; paper money is a lot easier to handle than thousands of copper coins. In the 7th century, during the Tang dynasty, private issued bills of credit were introduced.

Detailed explanation-2: -Jiaozi (Chinese: ) was a form of promissory note which appeared around the 11th century in the Sichuan capital of Chengdu, China. Numismatists regard it as the first paper money in history, a development of the Chinese Song Dynasty (960–1279 CE).

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: -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.