In the beginning, when there was no definite medium of exchange, barter trade was the way forward for most business transactions. This was somehow an easy and effective mode of exchange back then. People would meet in the market places exchange one commodity for the other and everyone went home happy with what they had got. The qualities of an effective currency expert are many.
This success did not last for long though. Sooner than later these people came to discover the many hindrances that this system faced. The first problem was experienced in the determination of value. People were never sure how much of what good to take to compensate the other. This created constant arguments in the market that at times ended in fights.
Much of the goods to be traded were agricultural in nature. This brought in the issue of these goods being perishable. These farmers were always too eager to sell their produce that they would settle for anything. This tendency caused them great losses as they would end up collecting so many goods they do not value or need whatsoever.
These problems had to be brought to an end. However, this would only be so if another mode of business transaction was introduced in to the society. It took time however eventually a more effective system was introduced in the market. This was the use of money. Money is basically any commodity chosen to be uniformly used as a medium of exchange.
The commonest forms of money come either as notes, coins or promissory notes. These have the advantages of being uniform in nature from one nation to the other. It is also easy identifiable within the boundaries of the country. Money is also highly durable as a hard but flexible material is used to print the notes in use.
Various denominations were created to enhance on the divisibility of the money. This made it very easy to carry out both the big and small transactions as well. It was made very light in weight and small in size to make portability very easy as well. This new medium of exchange was very effective and had several purposes too.
Money allowed business men to shift their property from one place to another without necessarily having to carry them around. This element fascinated people the most. People could even transfer their permanent assets from a particular place to another of their choice and convenience. This purpose although had more technicalities especially if one intends to transfer value across nations.
The duty of exchanging currencies is no simple task. It is due to this reason that there are experts trained to perform these esteemed duties. This person is expected to change the money value of one currency to that of the other country so that it can be used in that other country as well.
This success did not last for long though. Sooner than later these people came to discover the many hindrances that this system faced. The first problem was experienced in the determination of value. People were never sure how much of what good to take to compensate the other. This created constant arguments in the market that at times ended in fights.
Much of the goods to be traded were agricultural in nature. This brought in the issue of these goods being perishable. These farmers were always too eager to sell their produce that they would settle for anything. This tendency caused them great losses as they would end up collecting so many goods they do not value or need whatsoever.
These problems had to be brought to an end. However, this would only be so if another mode of business transaction was introduced in to the society. It took time however eventually a more effective system was introduced in the market. This was the use of money. Money is basically any commodity chosen to be uniformly used as a medium of exchange.
The commonest forms of money come either as notes, coins or promissory notes. These have the advantages of being uniform in nature from one nation to the other. It is also easy identifiable within the boundaries of the country. Money is also highly durable as a hard but flexible material is used to print the notes in use.
Various denominations were created to enhance on the divisibility of the money. This made it very easy to carry out both the big and small transactions as well. It was made very light in weight and small in size to make portability very easy as well. This new medium of exchange was very effective and had several purposes too.
Money allowed business men to shift their property from one place to another without necessarily having to carry them around. This element fascinated people the most. People could even transfer their permanent assets from a particular place to another of their choice and convenience. This purpose although had more technicalities especially if one intends to transfer value across nations.
The duty of exchanging currencies is no simple task. It is due to this reason that there are experts trained to perform these esteemed duties. This person is expected to change the money value of one currency to that of the other country so that it can be used in that other country as well.
