Governments so far may use currency since the an instrument out of policy, print papers money including the You greenback, to cover army expenses. They could as well as set the fresh conditions at which they might redeem notes to own specie, by limiting the level of get, and/or minimal matter that could be redeemed. For the majority big economic climates using coinage, copper, gold, and you can gold designed about three levels from gold coins. Gold coins were utilized to have high sales, payment of one’s army, and you may support away from state issues. Silver coins were utilized for midsized purchases, so that as a great tool of take into account fees, fees, deals, and fealty, when you are copper gold coins represented the brand new coinage away from preferred deal. This system was included in old India while the day of your Mahajanapadas.
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