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.
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.
Much of the goods to be traded were agricultural in nature. This brought in the issue of these goods being perishable. These farmers were always too eager to sell their produce that they would settle for anything. This tendency caused them great losses as they would end up collecting so many goods they do not value or need whatsoever.
This challenged the elite of the time to sit down and think of more convenient ways to conduct their business transactions. The use of weighed gold coins preceded barter trade however it did not improve much as this was highly expensive and gold was rare. More brain work was done and this time money was introduced.
The commonest forms of money come either as notes, coins or promissory notes. These have the advantages of being uniform in nature from one nation to the other. It is also easy identifiable within the boundaries of the country. Money is also highly durable as a hard but flexible material is used to print the notes in use.
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.
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.
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.
Much of the goods to be traded were agricultural in nature. This brought in the issue of these goods being perishable. These farmers were always too eager to sell their produce that they would settle for anything. This tendency caused them great losses as they would end up collecting so many goods they do not value or need whatsoever.
This challenged the elite of the time to sit down and think of more convenient ways to conduct their business transactions. The use of weighed gold coins preceded barter trade however it did not improve much as this was highly expensive and gold was rare. More brain work was done and this time money was introduced.
The commonest forms of money come either as notes, coins or promissory notes. These have the advantages of being uniform in nature from one nation to the other. It is also easy identifiable within the boundaries of the country. Money is also highly durable as a hard but flexible material is used to print the notes in use.
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.
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.
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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