Money Makes The World Go On

The value of money is what value we give it at any time. The value attributed to money set in relation to the value given to goods and services. Before money was devised, the exchange of goods and services were implemented as a direct exchange. They looked for someone who had products that you need and also want the products you have. This system, known as barter, was difficult. In order to facilitate trade, money was invented. You may just find someone who needs your goods and sell them in exchange for money. You can then find someone who has the products you need and buy them with the money you have with you. The form that the money was separate but coins became popular. Coins were embossed with precious metals like gold, silver and copper. Subsequent coins began to be replaced with cheaper metals and with worthless banknotes called currency. In modern times, virtual money in the form of digital cash has come to be used in transactions. 

It was in China in the mid-13th century, introduced paper money first. Sweden was the first European country to introduce paper money in 1661. Sweden depended on the copper coins had a lower real value as opposed to other precious metals. As a result, they had to introduce coins that were heavier to set a higher value. This was unworkable. Paper money was attractive to implement, because it was easy to take with you as well to produce. The hard money with real intrinsic value was soon replaced by paper money. In order to give paper money, the value of paper money was backed by precious metals, which the government held acquisition and retention. Most industrialized nations backed currency with a gold standard in 1990. Since then, gold was switched from paper money and instead became the legal tender by government decree. 

The market where the currency is traded on the exchange market or forex for short. Foreign currencies are bought and sold in this market by banks, governments, financial institutions, currency traders, speculators and money managers. Forex market has established itself as a separate economic activity in the 1970s. The fixed exchange rate between two currencies were converted to floating exchange rate in 1971. The estimated daily turnover forex market is about U.S. $ 4 trillion. The market has been expanding apace. There are many learning kits such as Learn Forex Live Forex Trading Made EZ and London Forex Rush System 

which teaches you the forex market. 

When activities, employment and domestic production in a country increases, the demand for its currency rise. When there is an increase in exports of goods and services from a country that demand for the currency of the country increases. Forex market, the market needs for currencies.