Plastic Money

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Money is a medium of exchange. We can buy each and everything through this exchange medium. Survival now a days cannot be possible without money.

Plastic money is a money we use now a days like credit card, debit card and plastic notes. These plastic notes has merits that:-

1. They cannot be copied like any other notes.
2. Also these plastic notes are waterproof, but please don’t try this.
3. We can kept them anywhere there is no exception in their place.

But do you know the origin or evidence of money? OK I will tell you:

Barter system:

There were no medium of exchange earlier like we all are using now. At that time people use to exchange commodities with commodities. That was also called as C to C exchange or barter system.

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This was a system in which commodities are the medium of exchange and are exchange for the purpose of getting some other things. That time the commodities which are commonly used as exchange medium are potatoes, tomatoes or pearl etc and all other commodities you have are acceptable.

We had to search the prospective buyer and seller of the commodities we have and of the commodities we want.

The limitations of barter system are:

Dual aspect coincident:

In barter system this was really very difficult to find a dual aspect coincidence or prospective buyer and at the same time a prospective seller.

Search cost:

There required huge cost in search of prospective buyer and at the same time prospective seller.

Wastage of time:

This was the wastage of time and money.

Cannot be stored:

There were no storage facilities at that time so the purchasing power cannot be stored and thus we had to spend them immediately, which causes trouble for the seller.

5].No specific measure:-

There were no specific units to measures the quantity of the commodities.

After barter system Gold money system comes into existence but when people come to realise the value of money they start keeping it to the homes.

Image via Wikipedia

After gold coins

Notes are published by Government which we still are using. But these notes were not waterproof

Now this is a generation of plastic money and plastic notes. We are enjoying.