Money

Money is used as a means of currency to exchange goods or services around the world. In different countries, the type of money used and the value of it varies, depending on the government and the economic system in place. Despite the differences, most whole units of money are printed on paper, while coins are used to denote parts of the whole.

For example, in the United States, money is distributed in the form of dollars. In Canada, the monetary unit is also called a dollar. But, a Canadian dollar is worth a different amount than an America dollar.http://www.xe.com/ucc/convert.cgi?Amount=1&From=USD&To=CAD&image.x=27&image.y=10&image=Submit These values are arbitrary and fluctuate due to a country's trade deficit, economic standing, and the peaks and valleys of the commodities market.http://economics.about.com/cs/money/l/aa022703b.htm

While the U.S. and Canada use their respective dollars as a unit of money, other countries and regions use entirely different monetary measurements. In Europe, money is measured in the form of the Euro. In Britain, money is counted in pounds, which also fluctuate in value versus the American dollar and other currencies.http://www.x-rates.com/d/GBP/table.html

Countries in South America and Africa also use different units of money in each area. Nigeria uses the naira as its monetary standard, while Libya bases its economy on the dinar. Argentina uses the peso, while French Guiana uses the franc.http://www.exchangerate.com/charts.html?cont=South%20America Similarly, Asia has varying forms of money in different countries. In Japan, money is distributed as yen, but in India, the economy functions by using the rupee. All of these types of money are traded on the commodities market and subject to changing valuations.http://www.bloomberg.com/markets/currencies/asiapac_currencies.html

In most modern societies, paper money is used to provide for needs and to purchase other goods and services. Most people earn money by working for an employer, or through running their own business. They are then able to use their money to pay for their living expenses and to buy things they desire. This money is then funneled into the industry of a country and serves to boost the gross domestic product and, by extension, the national economy.http://www.pbs.org/wgbh/nova/moolah/history.html

Before the use of paper money originated, people used the barter system as a way of providing goods or services. When a person needed someone's assistance or wished to acquire a kind of property, he or she merely traded something valuable and received what they wanted in return. In ancient times, livestock, grains and plants were used to trade for things. These valuable possessions were used as a form of money.http://www.pbs.org/wgbh/nova/moolah/history.html

Around 1200 B.C., cowrie shells began to be used as a form of currency, particularly in Africa and Asia. 200 years later, the first metal coins were produced in China as a kind of imitation shell. By 500 B.C., silver, bronze and gold coins began to circulate as money. Paper money also originated in China, being first used around 806 A.D.http://www.pbs.org/wgbh/nova/moolah/history.html

The content in this page is not a substitute for professional financial advice. Please contact your financial advisor before using the information presented here.