Monday, July 23, 2018

Why was money different in various parts of the world?

Supposing you went to a remote area  in interior Africa and wanted to buy some food from a tribal. If you offer to pay for it in rupees, he will probably refuse. Do

you know why; It is because the rupee may have value in India, but it has no value for him. He cannot buy anything with it, and so as far as he is concerned, it is not

money-merely a piece of printed paper. On the other hand, if you offer to give him some salt, he will happily give you food in return. This is because salt is valuable

to him.
So, you see that you cannot make money by just printing paper or minting coins. Anything that is used as money should be valuable enough to get goods or services in

return. That is why throughout history, different part of the world have had different forms of money at different times.
At one time, cattle were valuable, and, so, cattle were equivalent to money. Later, grain and salt were much in demand, and so, they become a form of money.
Coins and paper  money came much later, and even then, each nation still prefers to mint its own coin and print its own pape
r money. Maybe, one day there will be just
one currency for the whole world, but right now, that day still seems far off.





NOTE:-When was the Algerian dinar  introduced

The dinar was introduced in 1964, replacing the Algerian new France. It is subdivided into 100 Santeria. The first series of banknotes consisted of 5, 10, 50 and 100
dinar denominations.

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