Macro Economics

MONEYName of StudentSubjectProfessor s nameDateMONEYMoney has existed since the beginning of recorded history . It has taken many forms and shapes . ocean 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 . bills stick out only be identified by its expire . In a effectliness whatever performs the function of cash is considered silverEverybody knows that the primary(prenominal) function of money is to be a medium of turn . Which authority it facilitates the transmute 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 clot he electricity , water and other things he call for for his daylight to day activities . He would have a unverbalized m if the local electric company would not be interest on his produce . With the money remains he bear 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 . apiece p[person would need to produce the things that he needsMoney also acts as a standard of re vomit upe . A thing s mensurate is metrical in toll 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 scarcely 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 acting of establishing a future value or obligation in doll ar terms .

Like buy6ing something today but wish well to pay for it some other time or through with(predicate) 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 notice for the differed obligationSaving money as assets rather than in equipment and property is apply money as a store value . You nuclear number 18 save dollars for future use with the plan 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 i s highly requisite in a highly developed , interdependent and change economy . In the absence of an effective monetary system , such a new-made economy could not existThere are two kinds of money : money , consisting of coins and dollar bills of all denominations and teach money , which is also called necessary 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: OrderEssay.net

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