Paper money is like a magic note that can buy you toys, candy, and even cars! Long ago, people used coins, but they were heavy and hard to carry. Then someone had the idea of using paper instead. It was lighter and easier to use. People started trusting it more and more, until it became something everyone used, like magic.
Examples
- A child uses a piece of paper instead of coins to buy candy at the store.
- A farmer exchanges paper money for grain in place of carrying bags of gold.
- Paper money becomes as valuable as gold when everyone agrees it has worth.
See also
- Why Do Prices Go Up So Much When There's a Shortage?
- Why Do We Use Money Instead of Bartering?
- Why Do We Have Different Kinds of Coins?
- Why Do We Have Different Kinds of Taxes?
- Why Do Prices Change So Much?
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Categories: Economics · money· history of economics· global economy · Text is available under the Creative Commons Attribution-ShareAlike License.