THE VARIETY OF PAPER MONEY


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World paper money, also known as banknotes or bills, is a type of currency made of paper and issued by a central bank or government. It functions as a medium of exchange, a store of value, and a unit of account, but has no intrinsic value itself. Paper money is a relatively recent development in the history of money, with its widespread use beginning in the 7th century in China and later spreading to Europe and other parts of the world.

Here's a more detailed explanation:
Medium of exchange:
Paper money allows for the easy exchange of goods and services without the need for a barter system.
Store of value:
It can be held and used later to purchase items or services, acting as a store of value over time.
Unit of account:
Paper money provides a standard measure for the value of goods and services, allowing for price comparisons.
Fiat money:
Modern paper money is fiat money, meaning it has value because a government declares it legal tender and not because it's backed by a physical commodity like gold or silver.
Historical context:
Paper money evolved from earlier forms of credit instruments like promissory notes. Merchants in China, for example, used promissory notes as early as the 7th century, which eventually led to the development of government-issued paper money.
Global variations:
While the concept of paper money is universal, its appearance, denominations, and security features vary significantly across different countries and time periods.
Evolving technology:
Paper money is constantly evolving, with new security features being introduced to combat counterfeiting.

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