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53 Facts About Money You Need To Know Right Now!

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One of the many money facts is that in 1803, in North Carolina, the first gold rush started.

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Who says money is not required to live happily?

If anyone says so, either that person might not know the flavor of money or that person might not know the thrills behind the pleasures of having abundant money.

In other words, money is the medium of exchange to take care of basic needs, own luxurious materials, or anything in this world. Money is the superweapon to rule this world and fulfill almost all dreams. People work very hard in their life to build a currency empire.

US currency is the most traded and trending currency worldwide. Do you know Queen Elizabeth II holds records for appearing on more currencies than any other person in the world? Queen Elizabeth II holds a record for being displayed on 33 different countries' currencies. The other highly traded currencies after the US dollar are the British pound, Japanese Yen, and Euro. The United States displays famous presidential pictures on their dollar bills. We can see Abraham Lincoln on a $5 bill, Benjamin Franklin featured on a $100 bill, George Washington featured on a $1 bill, and Andrew Jackson featured on a $20 bill. However, Benjamin Franklin is not a US president but is often called the nation's founding father. He was honored and featured on US currency for his contributions to the nation. Martha Washington, the wife of George Washington, was featured on a $1 silver certificate. These silver certificates were issued in 1891 and discontinued in 1957. Martha Washington is the only lady who got featured on US currency. 

The US spends 5.5 cents on manufacturing a single $1 bill and 2.06 cents on producing a coin. And the ink used to print money is magnetic and has color-changing features. Every dollar bill displays a pyramid on its back which signifies a young country. US currency also displays an eagle indicating peace and war. The eagle displayed on the American silver dollar is Peter, a real eagle. The US five-dollar bill features Abraham Lincoln on the front and Lincoln Memorial on its back. Caesar was the first Roman and the first living person to have his face stamped on a coin.

Money brings a lot of luxury and brings along attention. There are many sources through which revenue can be doubled. Do you know that the ISS (International Space Station) is the most expensive human-made object globally? ISS cost 150 billion USD to build. Gambling is the biggest source through which a lot of revenue is earned, but it is not considered legal everywhere.

Let's explore some interesting money facts about the powerful paper that controls the entire world.

History Of Money

Money is the oxygen for the economic growth of any country. Money serves as a medium for the services and goods we buy. Though the barter system has prevailed earlier, it is impossible to balance the product we receive with the product we give. So, money is the simplest way to determine the value of things and services.

'Moneta' is a Latin word from where the word money is derived. Moneta usually means coin.

10,000 years ago, the barter system was in trend where food grains were exchanged in buying goods and services.

Earlier metal objects were used instead of paper money.

In Rome, in earlier days, salt was used instead of money.

The coin system is the biggest revolution in medieval times, as this enabled people to pay the value of a commodity by count rather than by weight.

The Chinese were the first to use objects in exchange for goods and services, but Lydia was the first to manufacture and use minted coins in 600 BC.

In 770 BC, the Chinese were the first among those who used paper money.

In Europe, the first paper currency was introduced in Sweden.

Till 1913, all local banks used to print their money. It was considered a dream job to be a bank employee.

Currency wars started between countries because of increased economic and international trade.

Counterfeit currency came into force during the Civil War era.

Secret Service was started on July 5, 1865, in Washington D.C, to deal with the counterfeit currency problem.

Secret Service deals in safeguarding Presidents and Vice Presidents and in dealing with finance-related crimes.

Apart from money, credit and debit cards are widely used all over the world. Diners Club Inc. introduced its first credit card in 1950.

The first ATM was introduced on September 2, 1969, at Chemical Bank in Rockville Centre, New York.

By the 21st century, virtual currency and mobile payments came into use. Virtual currency is a representation of money in digital form. Electronic devices such as computers and cell phones are used to do money transactions.

Cryptocurrency acts as a medium of exchange through a computer network and is a digital form of money.

Functions

The four main services that money provides are the standard of deferred payment, a unit of account, store of value, and medium of exchange.

Medium of exchange is the sale and purchase of goods between two parties. Hence, money acts as a medium for sales, trading, and services.

Unit of account defines the value of things, goods, and services. The price tag on items we purchase is considered a unit of account.

A standard of deferred payment of money is the future for the value of goods and services we are currently using. It is one of the ways to settle debts. The types of money that act as a standard of deferred payment are fiat money, representative money, and commodity money.

Store of value is that money holds a strong value because it has the purchasing power of any goods and services. Precious metal currency is the best example of this.

Money Supply: Creation And Market Liquidity

Saving and investing money in assets is the present trend worldwide. Money is considered one of the safest investments and assets to have. Money is the first medium that gets influenced at times of inflation. Let us explore some money facts and how money influences the economy.

The US dollar plays a vital role in the world economy. As most of the commodities are exchanged in dollars, the economy of any country spikes immediately with a change in the value of the dollar.

Federal Reserve Bank plays a vital role in the US economy.

One of the important and famous Federal Reserve Banks' tasks is to control and influence the country's economic systems.

Federal Reserves do not create or print money.

The main job of these Federal Reserve Banks is controlling inflationary pressures, promoting economic growth, and creating employment.

These banks achieve these goals by adjusting interest rates.

An increase in interest rates directly influences US capital flows.

Liquidity is when a fixed asset is converted into liquid cash effortlessly, without fluctuating its market price.

Cash in hand is considered the first and best liquid asset as it is readily available to buy any goods and services immediately.

The question arises as to who creates and prints money. In the USA, the mint coins are printed by the United States Mint, and the Bureau of Engraving and Printing prints the US currency's paper money.

Banks play a vital role in creating money through bank deposits and granting loans.

Almost 97% of money is in global bank deposits, and only 3% is physical cash.

Every new loan is a medium for these banks to create money. For example, if you want to buy a house, take a loan from the local bank. The bank does not give money, and the bank credits the money in your bank deposit of the size of the mortgage.

To restrict more loans from being issued by local banks, Federal Bank controls these interest rates.

The more the interest rate, the less borrowing of loans, and the fewer interest rates increase the urge for loans. In this manner, the inflow and outflow of cash are balanced.

So, money supply should be stabilized as an increase in money supply influences the decline in liquidity.

Narrowing of money is important for any country. Narrow money is the total liquid money that can be immediately used when needed.

The Treasury Department in the US takes care of federal finances by managing currency, collecting taxes, managing public debt, and government accounts. The Treasury seal features 13 stars, an indication of 13 states, a key, and a balancing scale.

North Korea is famous for releasing fake currency in the markets, often called super dollars.

Types Of Money

Both coins and paper money are considered a type of currency, and checks are also considered to be paper money. As per United Nations, there are almost 180 currencies used worldwide.

There are seven types of money people use worldwide. They are commodity money, fiduciary money, fiat money, metallic money, paper money, reserve money, and finally, commercial bank money.

Commodity money is one of the oldest forms of money that can satisfy the four main features: a standard of deferred payment, a medium of exchange, a unit of account, and a store of value.

The value of commodity money is defined by the commodity for which it is constituted.

The best examples of commodity money are tobacco, gold, and spices.

Fiduciary money is generally banknotes, cheques, and coins whose value depends on the trust. It is a general contract or agreement to pay a certain amount when both parties are confident enough.

Fiat money, whose value is more than its face value, serves as a medium of exchange. The government generally decides the Fiat money's value.

In metallic money, metal coins are made out of precious metals like gold, silver, and bronze. The value of these coins is equivalent to their substantial value.

Metallic money was in trend before the pre-machine age, and gold, silver, bronze, and copper coins were used.

Paper money replaced metallic money, which usually involves banknotes and cheques.

Printing of paper money is regulated by central banks of respective countries.

Reserve money, also known as central bank money, base money, and high-powered money, is important for the monitory policy of the country.

Circulation currency includes notes, small coins, and big coins shown in the RBI balance sheet.

Commercial bank money is given in loans and advances provided by commercial banks to buy services and goods. The money provided by commercial banks is always greater than the real value of the currency.

FAQs

Who invented money?

The answer to who invented money is unknown. Earlier, people used metal objects instead of money. But coinage trend was first implemented and initiated by the European region named Lydian (present-day Turkey) around 700 BC. Soon after that, other civilizations started minting coins defined with a specific value.

What is the history of money?

Before money came into existence, the barter system was in trend, where goods such as weapons, tea, salt, and food grains, were exchanged between traders. Later, coins came into existence where people could count by the number of coins required rather than by weight. In around 500 BC, the first-round coins came into use, and in 800 AD, the silver penny came into use. Between 700-800 AD, China became the first country to use paper money. By the 2000s, digital money came into existence, where cryptocurrency and digital forms of money became popular.

What is money made out of?

UK notes are made of linen rag and cotton fiber. The unique feature and reasons for the great look of the U.S. currency are that they are 25% linen and 75% cotton, and the cotton fiber papers came from the shrubs. Recently some countries are using polymer banknotes which are synthetic ones.

When was money first used?

In European Lydia, which is modern-day western Turkey, the first money was made using industrial facilities.

What is the first paper money?

China is the first country to use paper money or paper currency in the form of promissory notes.

Who prints money?

In India, RBI has the absolute authority to print money. In the USA, the mint coins are printed by the United States Mint, and the Bureau of Engraving and Printing prints the US currency paper money.

What is the oldest coin in the world?

The Lydian stater, made of silver and gold, is the oldest coin in the world.

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The Kidadl Team is made up of people from different walks of life, from different families and backgrounds, each with unique experiences and nuggets of wisdom to share with you. From lino cutting to surfing to children’s mental health, their hobbies and interests range far and wide. They are passionate about turning your everyday moments into memories and bringing you inspiring ideas to have fun with your family.

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