Which is the correct order of money evolution?

Correct option is A

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The evolution of money has followed a historical progression as human societies advanced economically and technologically. The correct order is:

1. Commodity Money: In ancient times, goods with intrinsic value (such as grains, cattle, or salt) were used as money. These goods served as a medium of exchange due to their utility.
2. Metal Money: Over time, metals like gold, silver, and copper replaced commodity money. Metals were durable, divisible, and easier to transport, making them more practical for transactions.
3. Paper Money: As economies grew, carrying heavy metal coins became impractical. Governments and banks introduced paper currency as a promise of value, backed initially by metals (like gold).
4. Credit Money: In modern economies, credit instruments such as bank deposits, cheques, and digital currencies have become the primary forms of money. This form of money relies on trust in financial institutions rather than intrinsic value or physical backing.

Additional Information:

The evolution of money reflects a shift from tangible, intrinsic value (commodity and metal money) to trust-based systems (paper and credit money), driven by the need for efficiency and scalability in complex economies.

Other Options:

·     Paper Money, Credit Money, Metal Money, Commodity Money: This order is incorrect as paper and credit money are modern inventions and could not precede metal and commodity money.

       ·     Credit Money, Paper Money, Commodity Money, Metal Money: This reverses the historical progression, placing credit money first, which developed much later.

       ·     Metal Money, Paper Money, Credit Money, Commodity Money: This order incorrectly places commodity money last, although it is the earliest form of money.

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