What do you think happened as coins began to be used for all types of exchanges, whether to buy vegetables or to buy some land? What problems could have come up?
As coins became widely used for all transactions, several problems emerged.
Carrying large numbers of coins became difficult and heavy, especially for large purchases like land. Storing large quantities of coins required secure spaces.
Risk of theft increased when carrying valuable coins. Counting large numbers of coins was time-consuming, and small denomination coins made large transactions cumbersome.
Metal coins could be worn down or damaged over time. Transporting coins over long distances for trade was impractical.
These problems led to the search for alternatives, resulting in the development of paper money for higher denominations and easier portability.
Explanation
The chapter explains on Pages 13-14: 'As you may have imagined, it became difficult to carry a large number of coins. Storing the coins also became a problem. The search for a more suitable alternative ended with the use of paper money.' This led to currency notes for higher denominations while coins continued for smaller values.
Solution Steps
Carrying large numbers of coins became difficult and heavy, especially for large purchases like land
Storing large quantities of coins required secure spaces
Risk of theft increased when carrying valuable coins
Counting large numbers of coins was time-consuming
Small denomination coins made large transactions cumbersome
Metal coins could be worn down or damaged over time
Transporting coins over long distances for trade was impractical
These problems led to the development of paper money for higher denominations