How did paper currency evolve, and what role did it play in modern economies?

Paper currency evolved in ancient China and was introduced to India in the 18th century by banks. It was used for higher denominations, making large-scale transactions easier.

• Paper currency facilitated economic growth by providing a more convenient alternative to heavy coins, promoting trade and commerce.

· Today, it plays a crucial role in modern economies by being the main medium for most transactions, controlled by central banks to ensure stability.