Money and Its Fucntions

History of Money

Human needs are increasingly not limited to humans can not meet its own needs. At first, everyone is trying to make ends meet on their own. Humans hunt if he was hungry, make your own clothes from simple ingredients, look for fruits for their own consumption, in short, what is gained is what used to meet his needs.
To acquire goods that can not be produced by themselves, they look for people who want to exchange goods with other goods owned by him required. Finally they called barter exchanges of goods to meet their needs.

Barter exchanges have drawbacks such as difficult to find items that fit the needs, it is difficult to determine the exchange of goods and hard goods store to be exchanged, the man thought of a good which can be used as an intermediary in the exchange of money.

Understanding Money
Money is something that can be used to facilitate the exchange and as a legal tender.

The terms of money are:
- Received in general.
- It can last a long time.
- The value is fixed.
- Easily stored.
- Easily moved around.
- Easy to be shared without diminishing its value.

Money is divided into two functions, namely:
A. Original function, namely:
- The tool exchange
- The unit of measure of value.

2. Derivative functions are:
- Equipment for payment of debt
- Tool store of wealth
- Tools to improve the social status
- Tool to save.

Currency Value
- Nominal value is the value stated on the money.
- Intrinsic value is the value of the materials used to make currency.
- The Real (Internal Value) is the value of money as measured by the ability of money in exchange for goods or services.
- External value is the value of money is measured by its ability to exchange foreign currency.
Sources: http://id.shvoong.com/social-sciences/economics/2130700-pengertian-uang-sejarah-uang-syarat/

Opinion this Article : money is very useful in human life because it is a legitimate selling tool, and is a counter value of the goods