Эссе на тему "Coins and paper money / credit and bank cards".

Money is a special commodity that is the universal equivalent of the value of other goods and services.

Modern economics identifies five functions of money:

1. A measure of value. Money allows you to estimate the value of goods by setting prices.

2. Means of circulation. Money plays the role of an intermediary in the exchange process.

3. Means of payment. A money function that allows the time of payment not to coincide with the time of payment, that is, when goods are sold on credit.

4. Means of accumulation and savings. The ability of money to participate in the process of formation, distribution, redistribution of national income, formation of savings of the population.

5. The function of world money. It is manifested in the relationship between economic entities: states, legal entities and individuals located in different countries.

Metal money or coins (copper, silver, gold) were made in different shapes: first they were piece, then weight. Later, the coin began to have distinctive features established by the state: the appearance of the coin, its weight.

Metal money made of gold has gained huge popularity. Completely, the countries switched to the golden circulation in the middle of the 19th century. The leader among these countries was Great Britain. As you know, it had a huge number of colonies and dominions, so Great Britain ranked first in gold mining.

Paper money is the most important discovery of mankind. We owe this discovery to the Chinese. As you know, the Chinese created paper, and later printing. The method of paper money production combined both of these discoveries. The first paper money appeared in China back in the 800s of our era. Metal coins were very difficult to carry over long distances, so the government thought about creating paper money. It began to pay merchants not with coins, but with special certificates, which were easily exchanged for "hard" money. These certificates depicted people, trees, officials put their signatures and seals. Paper money was most likely brought to the west by travelers who were returning from China. They appeared in Russia in 1769

Paper money is very easy to handle. Compared to coins, they are easier to store, and they are convenient for calculations. The issue of this money is handled by the state. Paper money is protected by special signs, such as watermarks, various color schemes, etc. This is done to protect public money. It is very difficult to forge such money.

Paper money performs two functions: a means of circulation and a means of payment. They cannot be exchanged for gold, so they do not go out of circulation. Sometimes, the state, experiencing a lack of funds, issues more and more paper money. But it can be dangerous if you do not take into account the commodity turnover in the country. As a result, paper money "gets stuck" in circulation, and their depreciation occurs.

So, the essence of paper money is that they are issued by the state, are not exchanged for gold, and are endowed with a certain rate.

Bank plastic cards have been in use for a long time. Today they are a popular means of payment, gradually replacing cash. The main types are debit and credit cards. To determine which card best solves certain tasks, you need to understand the specifics of each of these products and know what the difference is between them.

The main difference between debit and credit cards is whose money is used by their owner. In other words, who exactly acts as the owner of financial resources. If we are talking about a debit card, then it is attached to the current bank account of its owner, on which his own money is stored. Since non-cash payments are made within the amount that is on the account, it is almost impossible to go into negative, except in some situations (for example, as a result of writing off service fees with a zero balance).

As for the credit card, it allows you to dispose of money belonging exclusively to the bank. Thus, it acts as a loan that a financial institution provides to its client. The money spent on the credit card must be reimbursed within the period specified by the contract, so that interest does not run up. Here it is more often possible to go into negative territory due to delays, changes in the credit limit and other factors. If we compare the rates for card servicing, then it will be higher for credit cards.

The main advantage of bank cards of any type is their convenience when performing a variety of financial transactions. You can make purchases in regular and online stores, make money transfers, settle accounts with counterparties, receive salaries, etc. By functionality, this payment tool is the most versatile.

It is also important that both debit and credit cards free you from the need to use cash. The consumer becomes more free to spend money and does not depend on the contents of the wallet at the time of purchase. Also, most cards have cashback – that is, a refund of part of the amount paid back to the account.

What should I choose – a credit or debit card? The answer to this question depends on the specific goals and objectives of the person. Any debit product is suitable for everyday needs with a minimum cost of service and the most loyal terms of registration. For example, several debit cards with different levels of cashback and income for the balance are available at once in Loco-Bank.