During the days of our forefathers when there was no money to use in the business transactions, barter trade was their way. Barter trade is basically the exchange of a good o commodity for another commodity. This was their only way of exchange and for quite some time it went very well for them. People would travel with their goods to the market make transactions and head back home. Characteristics of a good currency expert are vital.
The joy was however short-lived as a number of follies were found in this system. First of all it offered no element of measuring the worth of either item to be exchanged. The value was only assured and it varied from one exchange incident to another. The bulky nature of some commodities such as cows also made the system very tricky indeed. A person having to carry a bulky item back home will face numerous challenges on the way.
The fact that most of the goods that were up for trade were perishable caused another major problem. These people were desperate to trade them of as they depreciate at a very high rate. This made them to be cheated mostly and this was frustrating to them. It was also almost impossible to find two people and each one of them wanted exactly the others commodity. These problems made business very hard for them.
More effective mediums of exchange had to be developed. This process as quite slow in nature as the transitions went through the use of gold coins and other ornamentals. Finally a more definite form was introduced. This was the use of money. This took over and has been effectively in use to date. Money is any acceptable medium of exchange that a nation chooses to use.
This system proved to be highly successful from the start. This involved the government having to print identical notes and coins for the citizens to use in their business transactions. Due to the fact that they were identical in nature, identifying money became very easy and convenient as comparisons could be made readily. This form of money was also very tough and hence durable.
It was also made sure that all sizes and values were created. This was done to ensure that people can buy both the very expensive and every cheap commodity as well. This element is known as the divisibility factor. This made business transactions at all level very convenient and easy to carry out. The purposes served by this money were very many. Of them was the shifting of value.
One of the most basic of its uses was the transfer of value. Money could be used to move even the permanent assets from one place or even country to another. This is very important in business. However it meant that it had to be changed from one currency to the other. This is due to the fact that every currency can only be sued in the country of origin.
This is no simple task and it requires the skills and knowledge of a specialist. This person is known as the expert in currency. He is charged with the duty of exchanging currencies. This person must have a certificate from the concerned authorities in order to be trusted. He should also have vivid identification that can be verified.
The joy was however short-lived as a number of follies were found in this system. First of all it offered no element of measuring the worth of either item to be exchanged. The value was only assured and it varied from one exchange incident to another. The bulky nature of some commodities such as cows also made the system very tricky indeed. A person having to carry a bulky item back home will face numerous challenges on the way.
The fact that most of the goods that were up for trade were perishable caused another major problem. These people were desperate to trade them of as they depreciate at a very high rate. This made them to be cheated mostly and this was frustrating to them. It was also almost impossible to find two people and each one of them wanted exactly the others commodity. These problems made business very hard for them.
More effective mediums of exchange had to be developed. This process as quite slow in nature as the transitions went through the use of gold coins and other ornamentals. Finally a more definite form was introduced. This was the use of money. This took over and has been effectively in use to date. Money is any acceptable medium of exchange that a nation chooses to use.
This system proved to be highly successful from the start. This involved the government having to print identical notes and coins for the citizens to use in their business transactions. Due to the fact that they were identical in nature, identifying money became very easy and convenient as comparisons could be made readily. This form of money was also very tough and hence durable.
It was also made sure that all sizes and values were created. This was done to ensure that people can buy both the very expensive and every cheap commodity as well. This element is known as the divisibility factor. This made business transactions at all level very convenient and easy to carry out. The purposes served by this money were very many. Of them was the shifting of value.
One of the most basic of its uses was the transfer of value. Money could be used to move even the permanent assets from one place or even country to another. This is very important in business. However it meant that it had to be changed from one currency to the other. This is due to the fact that every currency can only be sued in the country of origin.
This is no simple task and it requires the skills and knowledge of a specialist. This person is known as the expert in currency. He is charged with the duty of exchanging currencies. This person must have a certificate from the concerned authorities in order to be trusted. He should also have vivid identification that can be verified.
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