Paper money is like a promise. At first, people used coins made of metal, but they were heavy and hard to carry. Then, smart kings and emperors started letting people use paper notes that said how much money they had, it was lighter and easier to use. Soon, everyone wanted to use these paper notes instead of coins.
Examples
- A farmer carries a bag full of silver coins to market, but it’s so heavy he can barely walk.
- Your friend buys candy with a $1 bill instead of coins, and it feels like magic.
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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,History of Money,Currency