The History of Money: From Barter System to Banks

The video tutorial explores the role and evolution of money in the economy. It begins by outlining the functions of money, such as a medium of exchange, measure of value, and store of value. The tutorial then delves into the history of money, from the barter system to commodity money like gold and silver. It explains the development of banknotes in China and Europe, leading to modern paper money. The transition to the gold standard and eventually to fiat money is discussed, highlighting the impact of the Bretton Woods conference and the role of central banks in assigning value to currency.

Which of the following is NOT a function of money?

• Method of deferred payment

• Measure of value

• Source of energy

• Medium of exchange

What system was used before the invention of money?

• Credit system

• Barter system

• Fiat system

• Gold standard

Which civilization used the shekel as a form of money?

• Mesopotamians

• Greeks

• Ancient Egyptians

• Romans

What was the primary advantage of banknotes over commodity money?

• They had intrinsic value

• They were easier to carry

• They were more durable

• They were universally accepted

What system replaced the gold standard after World War II?

• Cryptocurrency system

• Barter system

• Fiat money system

• Commodity money system