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. Currently, the renminbi is the official currency of the People’s Republic of China (PRC).

Detailed explanation-2: -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-3: -The first known examples of paper currency as we would understand it today were created in China during the Song Dynasty (AD 960–1279). Promissory notes known as “Jiaozi” were printed by a group of merchants in Sichuan during the reign of Emperor Zhenzong (AD 997–1022).

Detailed explanation-4: -The Chinese issued the world’s first paper money This early paper money was in use when Marco Polo visited Kublai Khan in the 13th century. The note, called a kua, is the equivalent of 100 coins and dates from the Ming Dynasty, A.D. 1368–99.