Paper money is like a promise from the government that it's worth something. At first, people used coins and real stuff to trade, but paper was easier to carry. Over time, people started trusting the government more, so paper became a symbol of wealth.
Examples
- Your friend giving you $10 as a gift, which you use to buy a toy.
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See also
- Why Do We Have Different Kinds of Taxes?
- Why Do Prices Change So Much?
- Why Do We Use Money Instead of Bartering?
- Why Do Prices Go Up So Much When There's a Shortage?
- Why Do We Have Different Kinds of Coins?
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Categories: Economics · money,economics,history