An Introduction to Paper Money
The next phase in the money time line is the use of paper money or banknotes. One of the main reasons for the introduction of this form of money was a because of one of the main disadvantages of coinage or metal money. Carrying around the needed money to conduct business or every day transactions.
Hence the metal or coins would be deposited in a safe place and the keeper would issue a note 'promising to pay the bearer' the sum written on the note. From this concept as more and more people started to use it it developed into representative money where the notes could be traded because the value was guaranteed.
Bank notes are made up from a variety of different components. Many of these help to protect the bank note from being copied easily. Use the following activity to design your own note (Flash player 9 required).
