How Did Paper Money Come to Be?

Paper money is like a lightweight version of coins. Imagine instead of carrying a whole bag of coins, you just carry a little piece of paper that says how much it’s worth. People started using paper money because it was easier to carry and use in trade.

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Examples

You carry a piece of paper instead of a heavy bag of coins.
A merchant gives you a note saying 'I owe you five dollars.'
You trade the note for bread at the market.

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Categories: Economics · money,history of economics,currency