The History of Money and Banking Essay

The History of Money and Banking Essay

Length: 1178 words (3.4 double-spaced pages)

Rating: Strong Essays

Open Document

Essay Preview

The invention of money was a major improvement in peoples’ lives. In the past, people usually had to travel all day to find the person who is willing to exchange their goods. In addition, the goods people want to exchange did not have the standard value of measurement. This led to unequal exchanges. Furthermore, it is not convenient to carry heavy goods from one place to another for an exchange. To solve these issues, money will be the only solution. Later, people tend to develop money from cowry shells to credit cards for the convenience and to improve their society.
In the beginning of the human kind, there was no money. The only way to get what you want is to trade what you have for it. This system is called bartering. Sometimes, you will find a person who is willing to exchange your goods. However, most of the time, it is really difficult to find the person who is willing to trade with you. Since, you desperately need to exchange, you will need to travel the whole day until you meet the right person. In this type of situation, it will take a lot of time to find the person who wants to trade with your goods. Economists defined this kind of issue as transaction costs. It is the time and effort people spend before they can exchange their goods. In barter economy, the transaction costs are incredibly high. Another major drawback of barter system is that people cannot measure the value of goods. This usually leads to conflicts since people have to make unequal exchanges. In order to reduce transaction costs and conflicts, people developed commodity money.
Commodity is a fundamental item used by almost everyone. In the past, tea, tobacco, salt, sugar are considered as commodities. People use these commodities to exchange goods. T...


... middle of paper ...


... "Host Merchant Services." Host Merchant Services. 4 Dec. 2013. .
"Museum of the National Bank of Belgium." Cowry Shells, a Trade Currency —.4 Dec. 2013. .
"Wikia." Social evolution of money. 05 Dec. 2013. .
"Famiglia De Medici: The Extraordinary Story Of The Family That Financed The Renaissance." Business Insider. 6 Dec. 2013. .
"Origin and Evolution of Money." Origin and Evolution of Money. 4 Dec. 2013. .
Shirur, Anand. "Evolution of Money by Anand Shirur." Evolution of Money. 07 Dec. 2013. .

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

The History of Money and Banking Essay

- The invention of money was a major improvement in peoples’ lives. In the past, people usually had to travel all day to find the person who is willing to exchange their goods. In addition, the goods people want to exchange did not have the standard value of measurement. This led to unequal exchanges. Furthermore, it is not convenient to carry heavy goods from one place to another for an exchange. To solve these issues, money will be the only solution. Later, people tend to develop money from cowry shells to credit cards for the convenience and to improve their society....   [tags: Finance, Money]

Strong Essays
1178 words (3.4 pages)

The History of Money and Banking in the United States Essay

- Introduction This capstone project organizes and discusses the history of money and banking in the United States. With the current debates on the Federal Reserve’s Quantitative Easing policy, the climate of hostility in Washington over what role the federal government should play in the economy, it only makes since to take a look back at the history of money and banking in the United States. In order understand the past, so that we may create a more prosperous future. With the broad scope and breadth of this subject, a major question was asked to narrow the subject: What has caused booms and busts in the past and how or can we prevent them....   [tags: economy, federal reserve, policy]

Strong Essays
1723 words (4.9 pages)

The Westpac Banking Corporation Essay

- The Westpac Banking Corporation are facing tough decisions and will need to find a way to right the ship. Over a five-year period beginning in the 2010-2011 reporting period, they have experienced a negative compound annual growth rate that is annualised at -1.8%. They have seen stock plummet from roughly $35 in 2013 down to its current amount near $24. They are still a very profitable company, but relative to last year, profits fell close to 7%. How can they adjust the pricing strategy in retail banking to continue to offset and outpace the profit slowdown being seen on the business banking side....   [tags: Bank, Banking, Money, Interest]

Strong Essays
706 words (2 pages)

Essay on Benefits Of Mobile Banking And Mobile Money Services

- The world has transitioned into the technological era where the use of mobile phone has become remarkably important to connect people globally. Referring to Aijaz and Heikki (2014), mobile banking is often defined as an enabler allowing banks and customers to interact, while mobile money involves peer-to-peer business. To give an example of what these services offer, it would allow for financial transactions such as balance inquiries, funds transfers, bill payments, and inquiries concerning account history....   [tags: Bank, Financial services, Mobile banking]

Strong Essays
1031 words (2.9 pages)

Essay about E Banking : The Backbone Of The E Commerce Industry Worldwide

- Abstract E-Banking is a recent phenomena emerged after Internet Evolution .Internet has changed our lives in a numerous ways it has brought our world closer and made us close to the things which to due to geographical boundaries were far from us. Apart from making flow of information and communication easier for us Internet helped in significant evolution in the sectors like Commerce and Banking. E-Banking is the backbone of the E-Commerce industry worldwide. Due to payment by E-banking we are able to trade cashless with online retailers....   [tags: Bank, Online banking, Credit union, Money]

Strong Essays
1059 words (3 pages)

Lessons Learned in Money and Banking Essay

- Economic uncertainty has caused exaggerated criticism of the Federal Reserve. Money and Banking has deepened my understanding of the Federal Reserve and has helped me challenge those criticisms. The U.S. standard of living would drop if people lost faith in the safety of financial institutions. Frederic Mishkin makes the point in the text, The Economics of Money Banking, and Financial Markets (2010) that “Banks and other financial institutions are what make financial markets work. Without them, financial markets would not be able to move funds from people who save to people who have productive investment opportunities.” (p.7)....   [tags: Economics]

Strong Essays
1544 words (4.4 pages)

Biblical Principles of Money and Banking by Dr. Gary North Essay

- Biblical Principles of Money and Banking by Dr. Gary North Honest Money Biblical Principles of Money and Banking by Dr. Gary North is a book that brings together not only the history of how money came to be, but how to use it correctly. It teaches honesty and godliness in our daily dealings with earnings. The value of money is something hard to determine. Money is a commodity. For money allows us to establish prices for most goods and services available. Money exists because man realized that some things are more wanted and sought after than others....   [tags: Book Review Gary North]

Free Essays
809 words (2.3 pages)

The Regulatory Changes Of The Banking Industry Essay

- Thirdly, “Are you aware of the regulatory changes over the 20 years?” My reason for asking this likewise with the first question regarding age, this question will segregate respondents to those who are aware of the changes in regulation over the past 20 years. Linking this to the research question of “To regulate or not to regulate?” In answering this it is key that we identify the history of the banking sector in order to analyse both sides of the argument as history will show both sides and the regulation whether it is a lack of or a rigid system....   [tags: Bank, Finance, Regulation, Money]

Strong Essays
1004 words (2.9 pages)

Essay on Bank Accounting Information System And Electronic Banking

- Bank Accounting Information System And Electronic Banking Introduction      Information technology has had as much impact on our society as the industrial revolution. In the information age, companies are finding that success or failure is increasingly dependent on their management and use of information. Therefore, companies need a good information system that enabled an efficient and effective use of information to give them more competitive advantage (Moscove, Simkin, & Bagranoff, 1999). An information system is a set of interrelated subsystems that work together to collect, process, store, transform, and distribute information for planning, decisions making, and control....   [tags: Finance Bank Banks Banking Essays]

Strong Essays
4502 words (12.9 pages)

The American Banking System from 1800-1810 Essay

- The American Banking System from 1800-1810 Looking back to the outset of the 19th century, it is impossible to say that any real banking system had really been developed in the US. This is to say that, though there were roughly 120 private commercial banks that had been chartered by new state governments, the so-called system was scarcely organized. It was ad hoc in nature and directly linked to the merchant banking practices of the pre-independence period. The years preceding the turn of the century were important because they brought a central banking authority onto the scene....   [tags: Banks Finances Money Argumentative Essays]

Strong Essays
3640 words (10.4 pages)