Macro Economics

MONEYName of StudentSubjectProfessor s nameDateMONEYMoney has existed since the beginning of recorded history . It has taken many forms and shapes . sea shells , glittering objects , stones carved objects and precious metals have been used as gold . But what is silverMoney rump t be defined by the substance it is made or form it has taken .money can only be identified by its function . In a society whatever performs the function of money is considered moneyEverybody knows that the primary(prenominal) function of money is to be a medium of turn . Which means it facilitates the exchange of goods and services . Money makes it possible for slew to exchange the fruits of their labor for goods and services provided by othersWithout money , a farmer might find it backbreaking to exchange his erect for clothes electricity , water and other things he call for for his day to day activities . He would have a unverbalized time if the local electric company would not be interested on his produce . With the money remains he can sell his produce and buy whatever he wants from the money he earned . Without a monetary system , society would not be able to reap the advantages of strength . Each p[person would need to produce the things that he needsMoney also acts as a standard of repute . A thing s value is measured in terms of money . With the existence of money as a standard of value we can comparability a value of 12 trucks with the value of a fireside . We simply translate both into one dollar bill terms with see to the dollar as the standard of valueMoney also acts as a standard of differed establishments and as a store of value . As a standard of differed payments money performs the function 0of performing of establishing a future value or obligation in dollar terms .

Like buy6ing something today but wish to pay for it some other time or through episode it then performs the function of standard for differed payments . it is giving individuals who be vent into contracts with future obligations a clear understanding of the measure for the differed obligationSaving money as assets rather than in equipment and property is using money as a store value . You atomic number 18 save dollars for future use with the purpose of storing money rather than assets to reinforcement holdings liquid Using a property as a stored asset may put you in a difficult situation to convert it into money immediately at the importation you badly need itThis functions performed by money is highly requisite in a highly developed , interdependent and change economy . In the absence of an effective monetary system , such a modern economy could not existThere are two kinds of money : currency , consisting of coins and dollar bills of all denominations and teach money , which is also called demand deposit money . Checks are called demand deposit money because these checks are backed by a demand deposits at the bank . Checking...If you want to abridge a full essay, order it on our website: Ordercustompaper.com

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