The Economics of Money and Banking Chapter 2 Money and Monetary System >>Evolution of Payment System 1 Type Content Metal For its advantages,as the possibility of treasuring, divisibility,easy of transportation and beauty,metal Money and the payment system became the main standard of value A guarantee that the piece of paper was convertible Paper Money into the coins or into a quantify of precious metal Paper money issued by the government that are generally not convertible into precious metals but everyone accepts them as a medium of exchange. 8 GUO YING SEM TONGJI UNIVERSITYThe Economics of Money and Banking 8 GUO YING SEM TONGJI UNIVERSITY Money and the payment system 1 Type Content Metal  For its advantages, as the possibility of treasuring, divisibility, easy of transportation and beauty, metal became the main standard of value Paper Money  A guarantee that the piece of paper was convertible into the coins or into a quantify of precious metal  Paper money issued by the government that are generally not convertible into precious metals but everyone accepts them as a medium of exchange. Evolution of Payment System Chapter 2 Money and Monetary System