Question 1

What is currency?

Accepted Answer

Currency is money that people use to buy and sell things. It comes in forms like coins and paper bills that we use every day.

Question 2

Why do we use currency?

Accepted Answer

We use currency to trade goods and services. It makes it easier for people to buy what they need instead of trading items directly.

Question 3

What is a bank?

Accepted Answer

A bank is a place where people can keep their money safe. Banks also help people save money and borrow money when they need it.

Question 4

Who invented currency?

Accepted Answer

The first known currency was invented by ancient people in a place called Mesopotamia thousands of years ago. Before money, people traded goods directly.

Question 5

How does currency impact our daily life?

Accepted Answer

Currency allows people to buy the things they need, like food and clothes. It also helps businesses sell their products and services.

Question 6

Why are there different currencies in the world?

Accepted Answer

Different countries have their own currency, which suits their economy and history. For example, the United States uses the dollar, while Europe uses the euro.

Question 7

What was used before currency?

Accepted Answer

Before currency, people used bartering, which means trading goods directly. For example, someone might trade a chicken for some grain.

Question 8

How do banks help people save money?

Accepted Answer

Banks keep people's money safe and sometimes pay a small amount of extra money, called interest, when people save their money there.

Question 9

Who was the first to use coins as currency?

Accepted Answer

The ancient people of Lydia, which is now part of Turkey, were one of the first to use coins around 600 BC. These coins made it easier to trade.

Question 10

How do people get money?

Accepted Answer

People earn money by working at jobs or selling things. They can use this money to buy the things they need or want.

Question 11

Why do currencies have different values?

Accepted Answer

Currencies have different values based on how much people believe they are worth. This can change based on a country's economy and trade.

Question 12

How do banks help people borrow money?

Accepted Answer

Banks lend money to people to help them buy big things like a house or a car. People then pay the money back to the bank over time.

Question 13

What is paper money?

Accepted Answer

Paper money is a type of currency made of special paper that is easy to carry around. It's worth more than the paper it's printed on.

Question 14

How does currency help businesses?

Accepted Answer

Currency allows businesses to sell their goods and services to people in exchange for money, which they can use to pay for things needed to run the business.

Question 15

What is digital currency?

Accepted Answer

Digital currency is money that exists electronically. People use it on computers and phones to pay for things online.

Question 16

Why do people keep money in banks?

Accepted Answer

People keep money in banks to keep it safe and to earn a little extra money through interest. Banks also keep money secure from theft.

Question 17

What is a savings account?

Accepted Answer

A savings account is a type of bank account that helps you save money for the future. It often earns a little bit of extra money called interest.

Question 18

How do banks make money?

Accepted Answer

Banks make money by charging interest on loans they give to people and businesses. They also charge fees for some of their services.

Question 19

What is the history of paper money?

Accepted Answer

Paper money was first used in China over a thousand years ago. It became popular because it's easier to carry than coins.

Question 20

Why is currency important for the world?

Accepted Answer

Currency makes it easier for people and countries to trade goods and services. This helps everyone get what they need and grow economically.

The History and Impact of Currency and Banking - 20 FAQs Explained Simply