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String or ribbon Yellow Paper Start with a regular, cheap paper plate. First, cut it into thirds in big strips. The outside pieces become the wings, and the middle becomes the body of the dove.

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History of money Paper currency first developed in Tang Dynasty China during the 7th century, although true paper money did not appear until the 11th century, during the Song Dynasty. European explorers like Marco Polo introduced the concept in Europe during the 13th century.

The perception of banknotes as money has evolved over time. Originally, money was based on precious metals. Banknotes were seen by some as an I. With the removal of precious metals from the monetary system, banknotes evolved into pure fiat money.

Early Chinese paper money[ edit ] Song Dynasty Jiaozi, the world's earliest paper money. List of Chinese inventionsEconomy of the Song Dynastyand Jiaozi currency Development of the banknote began in the Tang Dynasty during the 7th century, with local issues of paper currency, although true paper money did not appear until the 11th century, during the Song Dynasty.

Several coins could be strung together on a rope. Merchants in China, if they became rich enough, found that their strings of coins were too heavy to carry around easily.

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To solve this problem, coins were often left with a trustworthy person, and the merchant was given a slip of paper recording how much money they had with that person.

If they showed the paper to that person, they could regain their money. Eventually, the Song Dynasty paper money called " jiaozi " originated from these promissory notes. By the Song Dynastyshort of copper for striking coins, issued the first generally circulating notes. A note is a promise to redeem later for some other object of value, usually specie.

The issue of credit notes is often for a limited duration, and at some discount to the promised amount later. The jiaozi nevertheless did not replace coins during the Song Dynasty; paper money was used alongside the coins. The central government soon observed the economic advantages of printing paper money, issuing a monopoly right of several of the deposit shops to the issuance of these certificates of deposit.

Even before this point, the Song government was amassing large amounts of paper tribute. It was recorded that each year before AD, the prefecture of Xin'an modern ShexianAnhui alone would send 1, sheets of paper in seven different varieties to the capital at Kaifeng.

For the printing of paper money alone, the Song court established several government-run factories in the cities of Huizhou ,[ which? The original notes during the Yuan Dynasty were restricted in area and duration as in the Song Dynasty, but in the later course of the dynasty, facing massive shortages of specie to fund their ruling in China, they began printing paper money without restrictions on duration.

The Venetian merchants were impressed by the fact that the Chinese paper money was guaranteed by the State.

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European explorers and merchants[ edit ] According to a travelogue of a visit to Prague in by Ibrahim ibn Yaqubsmall pieces of cloth were used as a means of trade, with these cloths having a set exchange rate versus silver.

In the beginning these were personally registered, but they soon became a written order to pay the amount to whoever had it in their possession. These notes are seen as a predecessor to regular banknotes by some but are mainly thought of as proto bills of exchange and cheques.

In the 14th century, it was used in every part of Europe and in Italian city-state merchants colonies outside of Europe. For international payments, the more efficient and sophisticated bill of exchange "lettera di cambio"that is, a promissory note based on a virtual currency account usually a coin no longer physically existingwas used more often.

All physical currencies were physically related to this virtual currency; this instrument also served as credit. Birth of European banknotes[ edit ] The first paper money in Europe, issued by the Stockholms Banco in The goldsmith -bankers of London began to give out the receipts as payable to the bearer of the document rather than the original depositor.

This meant that the note could be used as currency based on the security of the goldsmith, not the account holder of the goldsmith-banker.

This pivotal shift changed the simple promissory note into an agency for the expansion of the monetary supply itself. As these receipts were increasingly used in the money circulation system, depositors began to ask for multiple receipts to be made out in smaller, fixed denominations for use as money.

The receipts soon became a written order to pay the amount to whoever had possession of the note.

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These notes are credited as the first modern banknotes. Cheap foreign imports of copper had forced the Crown to steadily increase the size of the copper coinage to maintain its value relative to silver.

The heavy weight of the new coins encouraged merchants to deposit it in exchange for receipts. These became banknotes when the manager of the Bank decoupled the rate of note issue from the bank currency reserves. Three years later, the bank went bankrupt, after rapidly increasing the artificial money supply through the large-scale printing of paper money.pfmlures.com has as large selection of cheap personalized gifts for advertising, your products, services and events.

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