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Earliest Money and Its Functions We should note that nobody actually recorded the emergence of money. Thus, we can only speculate about how money first came into use. Through repeated exchanges, traders may have found that there were certain goods for which there was always a ready market. If a trader could not find a desired match or did not need goods for immediate consumption, some good with a ready market would be accepted instead. So traders began to accept certain goods not for immediate consumption but because these goods would be acceptable to others and therefore could be retraded later. For example, corn might become accepted because traders knew corn was always in demand. As one good became generally acceptable in return for all other goods, that good began to function as money. As we will see, anything that is used as money serves three important functions: a medium of exchange, a standard of value, and a store of wealth. Medium of Exchange. If a community, by luck or by design, can find one commodity that everyone accepts in exchange for whatever is sold, traders can save much time, disappointment, and sheer aggravation. A medium of exchange is anything that is generally accepted in return for goods and services sold. It can be shoes, meat, pots. The earliest money was commodity money Standard of Value. As one commodity, such as corn, became widely accepted, the prices of all goods came to be quoted in terms of corn. The chosen commodity became a common standard of value. The price of shoes or pots could be expressed in bushels of corn. Thus, not only does corn serve as a medium of exchange but it also becomes a yardstick for measuring the value of all goods and services.

Vikaviktoriya2 25 сент. 2014 г., 2:49:04 (9 лет назад)

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