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:
“Let it suffice that in the light of these two facts, namely, that the mind is One, and that nature is its correlative, history is to be read and written.”
—Ralph Waldo Emerson (1803–1882)
“I believe that history might be, and ought to be, taught in a new fashion so as to make the meaning of it as a process of evolution intelligible to the young.”
—Thomas Henry Huxley (1825–95)
“All history and art are against us, but we still expect happiness in love.”
—Mason Cooley (b. 1927)