title

Custom Search

 

[ Correct English | Common Errors | Words Differentiation | Sample Letters | Glossary of Correct Usage | Common Sentences | Q & A ]

[ English Compositions | Movie Reviews | High School Vocab | Advertisements ]

Sponsored Links

<<Prev

Summary

Next>>

   
TOEFL Vocabulary
English Conversation
English Grammar
American Idioms
English Comprehension
English Summary
English News
Business Idioms
 

Make a summary of not more than 120 words, describing the emergence of paper money used widely today.

 
Buying things today is so simple. Just enter a shop, say a book store, choose the desired book and pay for it. Long ago, before the invention of money, how did people trade?

The most primitive way of exchange should be the barter trade. In this form of transaction, people used goods to exchange for the things that they had in mind. For instance, if person A wanted a book and he had a spare goat, he must look for someone who had the exact opposite, that is, that someone, say person B, must have a spare book of person A's choice and is also in need of a goat. Having found such a person, the problem does not end here. A big goat may worth not only one book, hence person B may have to offer person A something else, say five chickens. However, he runs the risk of person A rejecting the offer as he may not need the chickens. The above example clearly illustrates the inefficiency of barter trading.

Many years later, the cumbersome barter trade finally gave way to the monetary form of exchange when the idea of money was invented. In the early days, almost anything could qualify as money: beads, shells and even fishing hooks. Then in a region near Turkey, gold coins were used as money. In the beginning, each coin had a different denomination. It was only later, in about 700 BC, that Gyges, the king of Lydia, standardized the value of each coin and even printed his name on the coins.

Monetary means of transaction at first beat the traditional barter trade. However, as time went by, the thought of carrying a ponderous pouch of coins for shopping appeared not only troublesome but thieves attracting. Hence, the Greek and Roman traders who bought goods from people faraway cities, invented checks to solve the problem. Not only are paper checks easy to carry around, they discouraged robbery as these checks can only be used by the person whose name is printed on the notes. Following this idea, banks later issued notes in exchange for gold deposited with them. These bank notes can then be used as cash. Finally, governments of today adopted the idea and began to print paper money, backed by gold for the country's use.

Today, besides enjoying the convenience of using paper notes as the mode of exchange, technology has led man to invent other means of transaction too like the credit and cash cards.  

 
Sponsored Links
Answer
 
Long ago, people bought things through barter trade. However, the difficulty of having to look for the right partner and dividing the goods led people to switch over to monetary transaction. at first, beads, shells and fishing hooks were used as money. Near Turkey, gold coins with irregular denominations were used for trade. Later, King Gyges standardized the individual coin value. People soon found carrying coins around for shopping troublesome and thieves courting. Hence, merchants started to issue checks with names of the users on them to discourage robbery. Following that, banks started to issue cash notes in return for gold deposited with them. Finally, adopting the idea, today, governments printed paper money backed by gold for the country's usage. ( 119 words )
     
barter   To trade goods or services without the exchange of money
     
bead   A small, round object
     
ponderous   Having great weight
     
 
 

001    002    003    004    005    006    007    008    009    010    011    012    013    014    015    016    017    018    019    020    021    022    023    024    025    026    027    028    029    020    031    032    033    034    035    036    037    038    039    040    041    042    043    044    045    046    047    048    049    050    051    052    053    054    055    056    057    058    059    060    061    062    063    064    065    066    067    068    069    070    071    072    073    074    075    076    077    078    079    080    081    082    083    084    085    086    087    088    089    090    091    092    093    094    095    096    097    098    099    100    101    102    103    104    105    106    107    108    109    110    111    112    113    114    115    116    117    118    119    120    121    122    123    124    125    126    127    128    129    130    131    132    133    134    135    136    137    138    139    140    141    142    143    144    145    146    147    148    149    150    151    152    153    154    155    156    157    158    159    160    161    162    163    164    165    166    167    168    169    170    171    172    173    174    175    176    177    178    179    180

 
Sponsored Links
 
 
 
American Slang
English Proverbs
English Exercises
Common English mistakes
Ancient Chinese stories
Junior English essays
High School English essays
Lower Secondary English essays