Question

Explain various stages in the evolution of money.

Mention different stages in the evolution of money.

State various stages in the evolution of money.

Answer 1

Stages in the Evolution of Money:

1. The first stage in the evolution of money is commodity money. In the olden days, commodities (such as shells, bows, arrows, stones, etc.) were used as medium of exchange.
2. In the second stage, metallic money was used as full-bodied money.
3. From the 19th century onward, the next important stage in the evolution of money is paper money.
4. In modern times, demand deposits at banks (called bank money) are used as money.
5. Plastic money in the form of debit cards and credit cards is becoming more popular these days.