Page 122 - Key to Social Studies 4

Let’s Observe

The World’s First Coin Currency

Around 600 B.C.E., the earliest coins

appeared at the Kingdom of Lydia. The

coins had no writing at all and were not

standardized in weight but in components,

being made up of 54% gold and 44% silver.

It is argued that the development of these

coins stopped because of their

unstandardized composition, so their value

di ered from coin to coin.

Ancient coins

The World’s First Paper Currency

The rst paper currency was established in China around the 7 century, but it did not
th
appear until its introduction to the Europeans by Marco Polo in the 13 century.
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Paper currencies started in the form of receipts. When rich people did not want to walk

carrying a lot of coins, they would leave their coins to a person whom they could trust

and in return this person would give them a receipt which they could use to regain their

money.

Later, these receipts, or promissory notes, were used by merchants to pay someone else,

and this marked the rst use of paper to pay for goods.

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