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Question
newsela article- response questions
when – and why – did people first start using
- why is currency used?
because money has many functions: measure of value
- when did humans start using currency?
The problem is about understanding the use and origin of currency, which falls under the Business discipline, specifically the subfield of Economics (as currency and its functions/history relate to economic systems and concepts like the measure of value, medium of exchange, etc.). For the first question, currency is used as a medium of exchange, store of value, and measure of value to facilitate trade, simplify transactions, and provide a common unit to assess worth. For the second, humans started using currency (in forms like commodity money, then later standardized coins/currency) around 600 - 650 BCE with the Lydian electrum coins, though earlier forms of commodity money (like shells, grains) were used in pre - historic/early civilizations for trade.
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- Currency is used as a medium of exchange (to facilitate buying, selling, and trading), a store of value (to save wealth over time), and a measure of value (to compare the worth of different goods/services), simplifying economic transactions and enabling more complex trade systems.
- Humans started using currency in standardized forms (like coins) around 600 - 650 BCE (with Lydian electrum coins), though earlier forms of commodity money (e.g., shells, grains, cattle) were used in pre - state or early agrarian societies for trade, likely dating back thousands of years before standardized currency, as trade and the need for a common exchange unit emerged with the development of agriculture and settled communities.