History
In ancient times, non-financial transactions were commonly conducted through a system of barter, in which goods and services were exchanged directly, without a financial medium. This had certain disadvantages, including the requirements that traders or their intermediaries meet face to face and that transactions normally be completed in a single swap. With the introduction of precious metals such as gold and silver, indirect trades greatly separated in time and space became possible. As cities, states, and empires were established, coins and other compact forms of specie were minted or printed as fiat money with set values, permitting the accumulation of assets that would not deteriorate over time as goods might and that had the relatively secure backing of a government which could adjust value by producing more or less of the currency. As fixed currencies were gradually replaced by floating currencies during the 20th century, and as the recent development of computer networks made electronic money possible, financial transactions have rapidly increased in speed and complexity.
Read more about this topic: Financial Transaction
Famous quotes containing the word history:
“It is the true office of history to represent the events themselves, together with the counsels, and to leave the observations and conclusions thereupon to the liberty and faculty of every man’s judgement.”
—Francis Bacon (1561–1626)
“There is a history in all men’s lives,
Figuring the natures of the times deceased,
The which observed, a man may prophesy,
With a near aim, of the main chance of things
As yet not come to life.”
—William Shakespeare (1564–1616)
“In history as in human life, regret does not bring back a lost moment and a thousand years will not recover something lost in a single hour.”
—Stefan Zweig (18811942)