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Money

1 The Meaning of Money


Money is any object or record that is generally accepted as payment for goods
and services and repayment of debts in a given socio-economic context or
country. Money is historically an emergent market phenomena establishing a
commodity money, but nearly all contemporary money systems are based on fiat
money.Fiat money is without intrinsic use value as a physical commodity, and
derives its value by being declared by a government to be legal tender, that is it
must be accepted as a form of payment within the boundaries of the country, for
all debts, public and private.
The money supply of a country consists of currency (banknotes and coins) and
bank money (the balance held in checking accounts and savings accounts). Bank
money usually forms by far the largest part of the money supply.
2 History of money
History of coins extends from ancient times to the present, and is associated with
economic history, the history of printing technology, the history shown by the
image on the coin, and the history of collecting coins. Coins are still widely used
for monetary purposes and others. All coins western history began with their
discovery of some little time before or after 700 BC on the island of Aegina, or
others according to Ephesians Lydia in 650 BC. since then, coins have the most
universal manifestation money printing history coin Coins were first made from
scrap metal. ancient coins were produced through the process of hitting the
hammer was on a landasan.Cinaproduced mainly cast coins, and it spread to
Southeast Asia and Japan.
The history of money begins around 2500 years ago with the first minting of
coinage in about the seventh to sixth century BC.Money is any clearly
identifiable object of value that is generally accepted as payment for goods and
services and repayment of debts within a market or which is legal tender within a
country.
Since ancient times people have swapped items of value either in the exchange
of gifts or else in in markets where a commonly shared system of tokens is more
convenient.
Many things have been exchanged in markets including, for example, livestock
and sacks of cereal grain (from which the Shekel is derived) things directly
useful in themselves, but also sometimes merely attractive items such as cowry
shells or beads were exchanged for more useful commodities. Precious metals
from which early coins were made, fall into this second category.
Numismatics is the scientific study of money and its history in all its varied form
A. History of Coins in Asia

History of Coins in Asiaearliest currency in Asia is also the oldest currency in


dunia.Koin invented several times independently of each other. Early coins of the
Mediterranean region of the kingdom of Lydia, and now dated ca. 600 BC. Dates
early coins of China and India is difficult and subject to debate.However, the first
coins from China at least as old as the earliest Lydian coins and probably older,
while the early coins of India seems to have appeared on the stage of premodern China berikutnya.koin always cast bronze or brass issue. This concept
was later adopted by Japan, Korea and Annam (Vietnam), and is also affected
areas in Asia Tenggara.Koin Lydian consists of discs or lump Electrum (natural
gold / silver alloy), and step on both sides with the dead. This concept quickly
spread to neighboring countries in the Greek cities of Asia Minor and the Aegean
Sea, and eventually the entire Mediterranean. When Lydia was conquered by the
Achaemenid Persian, Lydian coin production continued in the guise Siglos Darics
silver and gold.Another part of the Persian mint coins only started when the
conquest of Alexander the Great.
B. History of Coins Euro
Coins Indonesian Rupiah first circulated in 1951 and 1952. Although the rupiah
currency has diicetak by the government of the Republic of Indonesia, but the
shape is the paper, because the metal is still too scarce for the new government
is formed. Due to high inflation in the late 1950s to the early 1960s, no coins
were issued after 1961, and the coins are still in circulation are not newly minted
berharga.Rupiah an effort to reduce inflation in 1965. In 1971, the economy and
inflation under the New Order regime to be stable, and re-circulated coin with a
value of 1, 5, 10, 25 and 50 dollars, to 100 dollars plus two years later.Because of
inflation, the value of the dollar coin there are now 25, 50, 100, 200, 500 and
1000 rupess.
II.3 How To Make Coins
1. Melt the material that will become the coin. This can be copper or silver. The
material should be placed into a furnace and melted. Place the material on a
flat surface so the melted material will also be flat.
2. Roll the melted material through the roller machine that will press the material
to the desired thickness of the coin.
3. Blank the material. This means the coin material is placed under a machine
and blanks, or coins with no markings, are pressed out. This process is very
similar to that of a hole punching machine.
4. Edge the coins for smoothness and to remove any sharp or unshapely places.
This machine will also place calculated notches into the rim of the coin when
this design is called for.
5. Stamp the coins. This is done by putting each coin in a press which places
particular markings on both sides of the coin.

6. Inspect the coins for disfigurement or other imperfections that make the coin
void. Throw the incorrect ones into another melting group. They can be used as a
whole or parts of other coins so as to not waste materials.
II.4 The Function of Money
A. The Original Function
1) as a means of Exchange
2) as a means of calculating unit
B. The derivative Function
1) as a means of payment
2) as a pointing device prices
3) as a means of storing/saving
4) as a driving force of economic activity
5) as a mover and shaper of wealth
6) as a creator of employment
7) As a standard tool of taxpayer debt
8) as a commodity trade
II.5 Advantages and Disadvantages of Coins
A. The benefit or the excess coins are:
1) As a means of Exchange which is strong and long-lasting (long-term
durability).
2) Easy to carry because it contains a large value in a small volume and easily
stored without reducing the value (portability).
3) Easy exchange of goods.
4) The value does not change from time to time or stable (stability of value).
5) Number of insufficient corporate world (elasticity of supply).
6) Easy divided into smaller units without reducing the value (divisibility).
7) The quality is easily controlleds
B. Lack or weakness of the coins is:
1) Carry money with large amounts of metal will cause heavy loads.

2) When payment is made which are much inter-seller will add to the cost of
transport is quite large and contains a high risk.
3) Preparation of metal material limited, while the coin needs grew.
4) The value cannot be always being calculation quantitatively.
5) Gold content owned by every province is not the same that causes gold
supplies are not the same.
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