Money. The history of origin of money.

The origin of money is referred to VII-VIII century BC when the primitive tribes had some excess of some products which they could exchange on other necessary products. The exchange proportions depended on accidental circumstances. But because of expansion of exchange especially with origin of social division of labour there were some difficulties in exchange operations.

In different times different peoples have different equivalents. Some tribes used cattle. North tribes (Mongolia, Pamir region) used fur. The tribes living near the sea used shell money (Ancient India, China, the eastern coast of Africa), During the time of Julius Caesar slaves were used as money. With the growth of commodity production the exchanged commodity became means of mutual exchange of all goods. Gradually the role of universal cost equivalent is monopolized by a definite commodity which is money. The universal form of cost is transformed into money. With increasing of social wealth the role of universal equivalent is attached to precious (noble) metals as gold and silver., which played the role of money material for a long period of human history.

Money in the form of bank tickets were issued in 1716 in France according to the projects of John LO (who was Scottish), who became the minister of finance of France. This fact gave a impulse to mass issuing and usage of money assignation.

Paper money as a finished form of cost sigh appeared as a result of gradual separation of nominal content of money from real. Paper money are imperfect because they do not have their independent cost. Expenses on its printing are not so high.

Credit money is paper signs of cost appeared on the basis of a credit.

So we can distinguish the following stages of development of money:

1. Origin of money is connected with fulfillment of function of accidental commodity.

2. Gold in the role of universal equivalent

3. Transformation to paper and credit money

4. Gradual forcing out of cash from circulation, the result of which is origin of electronic types of payment.

Money is a market instrument which has an absolute liquidity.

Liquidity- is realization, transformation into smth.

Money is a universal equivalent.

Money is a special commodity which has the property of a universal equivalent.

A universal equivalents is such commodity which is taken willingly as an exchange

Functions of money:

1.measure of cost. Money measures cost of all goods. Money expression of cost is a price of a commodity.

2. means of circulation. Money is an intermediary in circulation: commodity-money-commodity.

3.Means of payment. Money always fulfills this function when commodity or service is not paid immediately but after some time. (because of credit relations)

4. means of accumulation. This function is fulfilled by golden coins, goods from gold, gold ingot.

World money. Payments among countries are done in national currency which has a leading position in the world payment circulation. But this leading currency should represent a certain quantity of gold.

Control questions:

1. Property as economic category

2. Forms of ownership.

3. Transformation of forms and property relations.

4. Concept of privatization and stages of carrying out privatization in the Republic of Kazakhstan.

5. Models of economic systems.

6. Types of the organization of production: natural and commodity production.

7. Goods and its properties.

Сабақ 5.

Дата добавления: 2015-08-20