Hello T-Fans, |
Money has been an important issue in the history of Nigeria. The aim of this write up is to educate on how it's been going and different dimensions of currency spent in the country.
Just as we know, money is a very important concept because it is the major determinant of getting things. It is often defined as "anything that is generally acceptable as a means of exchange.
Trade By Barter
The "Trade by Barter" means of exchange used to be the only form of exchange where they make use of "Value for Value." In those days, there was nothing like currently (either in form of coin or paper). Trade by barter is mostly identified as "getting what you want with what you have."
In the barter system, for exchange to take place, there must be double coincidence of wants. The double coincidence of wants exists when, between any two persons, one is willing to accept what the other person is willing to give in exchange. Until this condition is fulfilled, exchange cannot take place. For example, a weaver cannot exchange his cloth for shoes unless the shoemaker wants cloth. Introduction of money has eradicated the need of double coincidence of wants.
For trade by barter to exist, someone must have what you need, must be ready to give and Vice Versa.
•Money now has "purchasing power" (I.e, the ability to measure),
•Money is now a store of value
Unlike the need to keep the exchanged goods in barter system, you can now keep money for as long as possible. In this new system, the financial intermediaries (banks) now come into existence.
Money came into existence as a result of paper issued by Goldsmith. They have their origin in the
receipts issued by goldsmith to those who deposited precious metals with them.
In early times, we've have;
•Trade by Barter system
In Nigeria, we had a time we were using Coin.
•Bank notes (also referred to as paper money)
This is present means of exchange.
Thanks for reading.
Trust you had a nice one?