Alireza eshgheali
- Law expert in Civil Company
- Iran, Islamische Republik
- 58
safe trade
Alireza eshgheali
Before the appearance of money, most transactions were done through the exchange of goods for goods. In every city and country, a single product was the benchmark and valuation. For example, in Iran, grain and in Tibet, tea was the unit of value measurement.
Later, due to huge problems such as spoilage of products during exchanges, metal coins were gradually used and used as a measure of value.
Gradually, the transfer of coins also became difficult and the basis for the creation of paper money or banknotes was provided. One of the first banks to officially start printing banknotes was the Bank of England.
Economically, money or bills had 3 basic functions, which are:
as a measure of value
as a medium of exchange
As a means of storing value
Ever since the banknote opened its place in the economy, for a long time its issuers held the equivalent of its face value in gold. This system had three main pillars:
The currency of the country had a fixed rate of parity with gold.
Central banks were only allowed to enter and exit gold and change the volume of paper money in circulation based on a fixed parity rate.
The entry and exit of gold from the country was done freely, and according to this, all the currencies of the world had a fixed rate of parity with each other and with gold.
Later, due to huge problems such as spoilage of products during exchanges, metal coins were gradually used and used as a measure of value.
Gradually, the transfer of coins also became difficult and the basis for the creation of paper money or banknotes was provided. One of the first banks to officially start printing banknotes was the Bank of England.
Economically, money or bills had 3 basic functions, which are:
as a measure of value
as a medium of exchange
As a means of storing value
Ever since the banknote opened its place in the economy, for a long time its issuers held the equivalent of its face value in gold. This system had three main pillars:
The currency of the country had a fixed rate of parity with gold.
Central banks were only allowed to enter and exit gold and change the volume of paper money in circulation based on a fixed parity rate.
The entry and exit of gold from the country was done freely, and according to this, all the currencies of the world had a fixed rate of parity with each other and with gold.
