In the earlier centuries before money was invented for business transaction, people basically exchanged good for goods with each other. A person would offer that which they had in plenty in exchange for the commodities they did not have. This was not the best of systems however it worked well for these early people at least for some time. The traits of an effective currency expert are paramount in business.
This success did not last for long though. Sooner than later these people came to discover the many hindrances that this system faced. The first problem was experienced in the determination of value. People were never sure how much of what good to take to compensate the other. This created constant arguments in the market that at times ended in fights.
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.
These problems had to be brought to an end. However, this would only be so if another mode of business transaction was introduced in to the society. It took time however eventually a more effective system was introduced in the market. This was the use of money. Money is basically any commodity chosen to be uniformly used as a medium of exchange.
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 is also easy divisible as it comes in all convenient denominations. This is from the small amounts to the big ones are all conveniently catered for. In addition to that it is easily portable in nature. Most money is very light and of a convenient size that can fit into any pocket easily. This money serves numerous purposes. Among them is the transfer of value. Money can be used to transfer value from one place to another.
Money allowed business men to shift their property from one place to another without necessarily having to carry them around. This element fascinated people the most. People could even transfer their permanent assets from a particular place to another of their choice and convenience. This purpose although had more technicalities especially if one intends to transfer value across nations.
The duty of exchanging currencies is no simple task. It is due to this reason that there are experts trained to perform these esteemed duties. This person is expected to change the money value of one currency to that of the other country so that it can be used in that other country as well.
This success did not last for long though. Sooner than later these people came to discover the many hindrances that this system faced. The first problem was experienced in the determination of value. People were never sure how much of what good to take to compensate the other. This created constant arguments in the market that at times ended in fights.
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.
These problems had to be brought to an end. However, this would only be so if another mode of business transaction was introduced in to the society. It took time however eventually a more effective system was introduced in the market. This was the use of money. Money is basically any commodity chosen to be uniformly used as a medium of exchange.
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 is also easy divisible as it comes in all convenient denominations. This is from the small amounts to the big ones are all conveniently catered for. In addition to that it is easily portable in nature. Most money is very light and of a convenient size that can fit into any pocket easily. This money serves numerous purposes. Among them is the transfer of value. Money can be used to transfer value from one place to another.
Money allowed business men to shift their property from one place to another without necessarily having to carry them around. This element fascinated people the most. People could even transfer their permanent assets from a particular place to another of their choice and convenience. This purpose although had more technicalities especially if one intends to transfer value across nations.
The duty of exchanging currencies is no simple task. It is due to this reason that there are experts trained to perform these esteemed duties. This person is expected to change the money value of one currency to that of the other country so that it can be used in that other country as well.
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