Finance summary – The history of money,London Stock exchange,Personal finances

The history of money

At different periods of time and in different parts of the world many different commodities have served as money. These commodities were: cattle, sheep, leather, fish, tobacco, tea, salt and others. Commodity should be fairy durable, easily divisible and portable that to serve effectively as money. None of the above-mentioned commodities possessed all this qualities, and in time they were replaced by precious metals, first by silver, later by gold. The coins came into use, when metal was cutting into definite weight, when the payment was made. Paper money first came into use in the form of receipts given by goldsmiths in exchange for deposits of silver and gold coins. Then, when goldsmiths became bankers their receipts became banknotes. That's how the first banknotes came into existence.

The London Stock exchange

A stock exchange is a highly organized financial market where bond, shares and other securities can be bought or sold. It function is to put those who wish to sell securities in touch with those who wish to buy them. Stock market business is worldwide. There is London, New York, Tokyo, Paris, Amsterdam, Brussels and other mega policies are the famous centers of stock exchange activity. The London Stock exchange one of the biggest financial centers. London has had a stock exchange for over 200 years. It moved to different places and different buildings. In 1986 "Big Bang" – legal reforms – was implemented and Exchange was change radically. Now it has a screen-based trading, stockbrokers deal in securities through telephones and computers. The Russian Stock Market is not so successful now, but it has a tremendous potential and of course our market soon will become one of the main financial centers.

Personal finances

Financial security is the most important thing in family finances. This is not the same thing as being rich; it means being freed from the need to think about money, living within your means. For day-to-day living you need ready cash but you also need a bit in reserve for a rainy day. The first thing to think about is your current account and how much is in it. Our family, for example, keeps all of our money in a saving account with a bank. And all of us have credit card, because credit card is a helpful way of handling with unexpected expenses. But credit is always costly, and of course it's just another form of debt. For some people, however, living on credit is a normal way of life. There is a credit from suppliers, hire purchase and loans from banks are the forms of consumer credit. Our family also is not afraid to use consumer credit. We think that credit enables us to enjoy the use of goods and services before we have fully paid for them. And, of course, we are not afraid to use consumer credit because we have a constant income. People earn money in different ways: they get an income from employment, from keeping money in a saving account with a bank, from renting property, from investing in shares in the stock market. For example our family income comes from different sources. The largest source is my parent's employment and return from their savings. Also we have a little income from investing in shares. Nearly all money goes on rent, utilities, transport, clothes and food. Our income is not large, we a middle-class family. The worst-off people are the unemployed and the homeless. For people living at a subsistence level even buying essentials is a struggle. They sometimes take out loans, borrow money from banks, but very often they are unable to cope with repayments. Banks are not willing to lend money to such people. My personal income is not large, but it is enough for me. My parents give me a pocket money and I get a grant. All my income I spend on leisure and entertainment. I try to be punctual about my finances, but sometimes it is very difficult for me and I don't do it well.

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