The essence of money in the modern world

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Have you ever thought about whatthe essence of money and how they appeared in our society? It is quite obvious that Robinson Crusoe on his uninhabited island did not need gold coins, because he could not eat them or take from them some benefit for themselves.

Even if, for example, Robinsonexchanged fish for the boards on Friday, then they would not be able to use banknotes. The need and essence of money people studied for centuries, but they could not come to a common opinion.

In order to understand the meaning of existencemoney, it is necessary to understand the main reasons for the exchange of goods. After all, barter lies at the heart of commercial relations. It is quite obvious that the exchange occurs only because both sides want to benefit from the transaction. Proceeding from this, it is possible to explain the essence of money as follows: the exchange of a certain number of banknotes for the necessary goods that can satisfy the needs of the person.

Great scientists of all time made a mistake,when they assumed that the exchange should be equivalent. In fact, the point is that both sides of the deal value differently what they trade. For example, the barter of one fish network per ten logs suggests that they have different values ​​for both entities.

In the course of historical evolution, peopleneed to come up with an equivalent exchange that would be suitable for any goods. This is how the first forms of money appeared: tobacco, sugar, salt, cattle, nails, beads and so on. All these goods in different countries were universal, that is, those that could be exchanged for any other necessary good.

Later, symbolic banknotes already appeared. The costs of their production were often inferior to their purchasing power (changeable coins, paper money). Then, the universal goods acquired forms of credit money, which represented certain obligations to other individuals and legal entities.

The essence and origin of money in the historicalcontext can be studied for a very long time, but most importantly, the realization of these two categories helps us to understand that money resources are still a specific commodity, no matter what one says.

Finance is not an abstract concept thatcan exist separately from a particular product. Money is a commodity that is in great demand mainly as a means of exchange in every corner of the world. The essence of money in the modern world can not be overemphasized, because it is on them that the entire world economy stands and functions. There is not a single person who could live even one full day without using rustling papers, sonorous coins or credit cards.

In today's world, there is not onea person who would treat money with indifference, because they reward their owner with power and raise their social status. No one can dispute the fact that having a certain amount of money, an individual can buy not only goods and services, but also time of enjoyment: travel, communication, art and so on. Having the main resource - finance, it is possible to provide for themselves and their families a cloudless and stable future.

But do not forget that the essence of money, andit is the desire to possess unimaginable amounts that can do more harm than good. What do they give us money? The ability to meet their needs, power, prestige and much more. The history of the formation of funds is very rich and interesting for research and study, because this product has passed in its development a very long and thorny path: from the simplest forms of sharing benefits to modern credit.

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