The emergence of money has gone through four stages:
(1) Accidental barter-the first stage (2 sheep = 1 stone axe)
(2) Expanding barter-the second stage (2 sheep = 1 stone axe)
= 1 bag of rice
= 1 piece of cloth
=3 knives
=……)
(3) Universal equivalent as a medium of exchange (2 sheep =
1 bag of rice =
Three knives =
1 cloth =
..... = 1 common equivalent stone axe-a commodity separated from other commodities can be exchanged with all other commodities, showing the value of all other commodities).
Compensation, income, account, loan, purchase, credit, etc. show that in ancient China, shells were once used as universal equivalents.
Disadvantages: ① Different commodities as universal equivalents in different regions and different periods limit the further development of commodity economy;
(2) These things are often bulky, of small value, inconvenient to carry and store, and difficult to divide.
Finally, common equivalents focus on precious metals-gold and silver.
(4) Gold and silver are fixed as universal equivalents, and the generated currency is most suitable as universal equivalents because of its advantages of small volume, great value, portability, long-term preservation, uniform texture and easy division.
Evolution of monetary form:
{1} Physical currency (turtle shell, seashells, mussels and pearls, leather, millet, cloth, livestock, farm tools, etc. ) has always been used as physical currency, of which there are two kinds with long time and great influence: one is shell currency, the other is grain and silk.
Beibi is one of the earliest currencies in China, with seashells produced in the South China Sea as the currency material. This kind of shell was originally used as an ornament, but because of its durability, high value, portability and natural unit, it was used as money. China used steles for a long time, from the Yin and Zhou Dynasties to the abolition of steles after Qin Shihuang unified China, which lasted more than 1000 years. You think it is a powerful organ that can make people accept shells as universal equivalents, but I think this is due to the habit of commodity exchange.
{2} Metal money {3} Paper money {4} Credit money {5} Electronic money
3.5. High-energy currency, also known as "base currency", is a currency that can expand or tighten the money supply through the deposit and loan business of commercial banks.
The base currency in western countries includes the sum of the deposit reserves (including statutory reserves and excess reserves) deposited by commercial banks in the central bank and the cash held by the public.
Because it can enlarge or reduce the total money supply, it is also called high-energy money. It is a debt certificate issued by the central bank, which is manifested in the deposit reserve of commercial banks (R) and the currency held by the public (C).
Base currency = deposit reserve+excess reserve+cash on hand in the banking system+cash held by the public.
Deposit reserve: refers to the reserve formed by the state that specialized banks must hand over part of their deposits to the Central Bank (People's Bank of China) according to the specified proportion, including statutory deposit reserve and excess deposit reserve.
In order to meet customers' withdrawal needs, deposit-taking financial institutions keep certain cash reserves. However, for deposit institutions, maintaining cash reserves is a burden. Because this part of the cash has no interest income, it has to pay the custody fee, deposit interest and employee salary, so as a profit-oriented financial institution, the rational action is to reduce the cash reserve as much as possible, especially when there are good speculation opportunities. As a result, the deposit reserve is reduced, and as a result, bank liquidity crises often occur. Therefore, countries have generally established a deposit reserve system, forcing deposit-taking monetary and financial institutions to deposit their reserves in the central bank to ensure the liquidity and liquidation ability of deposit-taking monetary institutions.
The form of existence is the deposits deposited by commercial banks in the central bank, not short figures, but real banknotes.
4, the central bank balance sheet:
1 Asset 2 Liabilities
Cash in discount and loan circulation
All kinds of securities and deposits
Other liabilities of gold foreign exchange reserves
Other asset capital projects
3 Total assets and items 4 Total liabilities and capital items
Among them, the liabilities are:
(1) Cash in circulation. It refers to cash and tokens issued by the central bank, held by the public and stored by financial institutions. It accounts for the largest proportion of liabilities.
(2) all kinds of deposits. Including deposits from commercial banks and other financial institutions, government deposits and foreign deposits. Among them, commercial bank deposits account for the largest proportion.
(3) Other liabilities. Liabilities not included in the above liabilities.
(4) Capital account. Central bank's own capital, including share capital, surplus balance and financial allocation.
Asset item:
(1) Discount and loan. Including the rediscount and refinancing of commercial banks by the central bank, as well as loans to the Ministry of Finance and other foreign financial institutions. Discount and loan occupy a very prominent position in asset projects.
(2) all kinds of securities. Mainly refers to the government bonds and foreign government bonds held by the central bank. This project accounts for a large proportion of the assets of major western developed countries.
(3) Gold foreign exchange reserves. The central bank purchases assets formed by gold, foreign exchange and special drawing rights of the International Monetary Fund.
(4) Other assets. Refers to the above three unlisted assets, such as land, equipment and collection.
I wonder if my answer can satisfy you. Please forgive me if there is any mistake. Welcome to discuss with me.
Well, your curiosity is really valuable, but I don't know if you know it. If the deposit reserve of commercial banks in the central bank does not meet the statutory standards, commercial banks can lend to each other. In other words, no matter what form the reserve deposit exists, it must meet certain numerical standards, and the owner must be the central bank, so it is meaningless to exist in any form, whether it is a deposit or a number on a check.
For 5: The question you want to ask may be how the newly issued currency of the central bank enters commercial banks and flows into the economic operation system.
The central bank is the currency issuer. The newly issued currency is lent by the central bank to commercial banks at a discount rate, and commercial banks expand the base currency of the central bank through lending business. The creation of the base currency provided by the central bank and the deposit currency of commercial banks is the relationship between source and flow.
The following is the process of commercial banks creating money:
First make the following assumptions:
(1) The public does not hold any currency;
(2) All public income is deposited in the bank in the form of demand deposits;
(3) The statutory reserve ratio is 20%;
(4) Commercial banks have no excess reserves.
Suppose that the central bank bought a government bond of US$ 65,438+US$ 0,000 and wrote a check for the bondholders of US$ 65,438+US$ 0,000. The bondholder can deposit this bond in Bank A, which can increase the deposit by $65,438+0,000. If the statutory reserve ratio is 20%, the deposit reserve of Bank A will increase by 1 2,200 USD, and the loan amount will increase by 1 1,000-12,800 USD.
If the borrower deposits $800 in the bank B..B, the deposit can be increased by $800, the deposit reserve can be increased by 800 x 20% = 160, and the loan can be increased by $ 800-800 x 20% 2640.
When the borrower deposits $640 into Bank C, the deposit can be increased by $640, the deposit reserve can be increased by 640 x 20%, and the loan can be increased by 640x640x20% = 565,438+028 (USD).
This process of deposit and loan will continue.
It may be a bit verbose, but this is my understanding of your question. I wonder if it will help you.