ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The skins and fur of animals is arguably the oldest currency that has ever been used. However, unlike other types of older currency, such as obsidian, flint, and for the most part, shells, this currency has not faded into oblivion until very recently.

Detailed explanation-2: -The first paper money issued by the government were “demand notes” commonly referred to as “greenbacks.” In 1862, Congress retired the demand notes and began issuing United States notes, also called legal tender notes.

Detailed explanation-3: -Barter system was the oldest system of money where goods were exchanged for goods and there was no common medium of exchange in the economy.

Detailed explanation-4: -The first recorded use of paper money was purported to be in the country of China during the 7th century A.D. as a means of reducing the need to carry heavy and cumbersome strings of metallic coins to conduct transactions.

Detailed explanation-5: -Leather money was used in China in the form of one-foot-square pieces of white deerskin with colorful borders. This could be considered the first documented type of banknote. The phrase “To pay through the nose” comes from Danes in Ireland, who slit the noses of those who were remiss in paying the Danish poll tax.