Cash Money Information

Introduction

There is a famous saying that “cash money runs the world”. Any individual whether a celebrity, politician, businessman or professional gets to be respected and admired in relation to the amount of cash money he has to his name. Cash money has become the SI unit for success. Others could argue that if money did not exist then there would be no reason for working hard as cash money is the major form of motivation to most individuals.

History

Money is generally any object that is accepted legally as a medium of exchange within a country, state or economic region. Cash money is any legal tender in form of coins or notes that can be used in exchange of goods, debt, or services. This also includes the value of assets that can be converted into cash immediately, as reported by a company.

Tracing back into the history of cash money, it begun to be used inform of commodity money, but most if not all contemporary money systems are based on fiat money. Fiat money is the kind that does not have intrinsic or major value as a physical commodity, and draws its value by being declared by a government authority to be legal tender; it therefore must be accepted as a form of payment within the boundaries of the country, for all public and private debts.

The first form of trade was barter trade where people exchanged goods for other goods. Soon they were using commodity money and not cash money in the form of shells, ivory, barley that was weighed in shekels which were generally the units of measure. The first usage of the term money came from Mesopotamia circa 3000 BC. Societies in the Americas, Asia, Africa and Australia used shell money often, the shells of the money cowry.

Features

The system of commodity money eventually evolved into a system of representative money. This occurred because gold and silver merchants or banks would issue receipts to their depositors - redeemable for the commodity money deposited. Eventually, these receipts became generally and widely accepted as a means of payment and were used as money. Paper money or banknotes were first used in China.

Cash money is used as a medium of exchange, store of value, measure of value, unit of account and as a standard for deferred payment. Without money no transaction can effectively take place in any part of the world. Different countries use different currencies and these currencies have to be exchanged for foreign transactions. Some currencies include the American dollar, Japanese yen, Sterling pound, Shilling, Euro. These have different exchange rates.

In recent times however the use of cash money has greatly been replaced by credit and debit cards, treasury bills, shares and debentures which are used to represent cash money. This is because they offer a lot of flexibility and convenience.

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