New emerging currency

In emerging world economy revolution is taking place.current currency system is losing its relevance. In old times barter prevailed to fulfill the daily needs of society of that time; people used to exchange things as required by them with the things as required by the other person; for example,if I require a cow for my use I would give say two or more goats to get one cow from the neighbor or say five or six hens for that. the system depended on system of requirement. Necessity or emergency depending at the time.

New emerging currency

This system had many faults for example, the persons involved would not agree at the exchange rate one or the other was willing to give or he or she did not have the required quantity to give. one party may not have the item as required by the other

As man progressed and their numbers increased the requirements of the society increased many folds the barter system failed to deliver. As saying goes, necessity is the mother of invention it was imperative to have a new system to meet the requirements of the society. A great deal of thinking was involved to find a system that could meet the required needs.

Finally, it was thought to standardize the system. Instead of bartering some precious stones were set as a standard. All items were linked to it for exchange. For example, say ten goats or twenty hens five horses or ascertain amount of grain could be had by a person for one/or some laid amount of that stone.But this system could not last for long,because it too had many drawbacks. Because that type of stones might not be available at all the places.

Then came the precious metals such as silver or gold.A certain quantity of every item was linked to a laid down amount of gold. This came to be accepted world over.This system of linking economy to gold too had its limitations.it was difficult to transport.A great deal effort,transportation and security of gold during journey made it a very limited proposition.

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