Apr 27 - Read 243-248...Answer the following questions
1. money can be used as a medium of exchange, a unit of account, and a store of value.
2. money is durable, portable, easily divisible, uniform, limited, and acceptable.
3. an example of commodity money is precious stones. an example of representative money is an IOU. an example of fiat money is the US dollar.
4. the US currency has value because the government placed that value on it in order to simplify exchange.
5. continentals became worthless when fiat money was established because the fiat money made the exchange of continentals more difficult and eventually obsolete.
6. if i was making a new united states i would use only coins and credit. all major money was spent via card and the black market, which is virtually unstoppable would use the coins.
7. i feel that it would be difficult to work for barter systems. like i couldn't work for 3 hours in exchange for 2 chickens...
May 10 - Read 10.3 Answer the following questions completely
1. Money is measured by being divided into different categories. M1 is money that people can get access to easily. M2 is all assets and value of M1 that can't be spent as money.
2. Financial institutions store money, save money, provide loans, provide mortgages, creating profit, and providing credit cards simple compound interest and banking.
3. banks make money on interest taken when giving loans.
4. Commercial banks, saving/loan associations, savings banks, and credit unions make up all the types of financial institutes.
5. Online banking has sped up all banking. We have shifted from all money transaction to nearly all credit transactions. now you can transfer any money anywhere at anytime. Also its very easy to keep track of funds.
1. money can be used as a medium of exchange, a unit of account, and a store of value.
2. money is durable, portable, easily divisible, uniform, limited, and acceptable.
3. an example of commodity money is precious stones. an example of representative money is an IOU. an example of fiat money is the US dollar.
4. the US currency has value because the government placed that value on it in order to simplify exchange.
5. continentals became worthless when fiat money was established because the fiat money made the exchange of continentals more difficult and eventually obsolete.
6. if i was making a new united states i would use only coins and credit. all major money was spent via card and the black market, which is virtually unstoppable would use the coins.
7. i feel that it would be difficult to work for barter systems. like i couldn't work for 3 hours in exchange for 2 chickens...
May 10 - Read 10.3 Answer the following questions completely
1. Money is measured by being divided into different categories. M1 is money that people can get access to easily. M2 is all assets and value of M1 that can't be spent as money.
2. Financial institutions store money, save money, provide loans, provide mortgages, creating profit, and providing credit cards simple compound interest and banking.
3. banks make money on interest taken when giving loans.
4. Commercial banks, saving/loan associations, savings banks, and credit unions make up all the types of financial institutes.
5. Online banking has sped up all banking. We have shifted from all money transaction to nearly all credit transactions. now you can transfer any money anywhere at anytime. Also its very easy to keep track of funds.