...MONEY Like it. Loathe it. Want it. Waste it. But you just cannot ignore it. That is “money”. According to Wikipedia, money is “any object or record that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context”. Money was developed according to man’s needs and requirements. In the beginning, there was no money. People engaged in barter, “the exchange of good or service for another good or service” (Steven Cobb, 2007, page 1), without value equivalence. For instance, a bag of salt is exchanged for a bag of tea. However, since the items most traded were commodity products, the barter system posed several problems such as product storage, shelf life, durability, transportation and divisibility problems. The frustrations of people in the barter system soon led them to the creation of money. There are those who believe that the earliest forms of money were the Cowry shells and have been traced back to China in 1200 B.C. Then metallic money used as a mode of payment and was then made of gold, silver, copper or nickel because these were more durable, portable and easily divisible than Cowry shells. However, the problem of measuring its weight and value arose when the metals were not used as coin but as bullion. Additional problems such as inconsistent supply when mines were fully used, transportation and storage problems were also present. Eventually these soft metals were alloyed to cheaper...
Words: 758 - Pages: 4
...THE HISTORY OF MONEY In the beginning, there was no money. 1. Self-sufficiency: families produced what they consumed and consumed what they produced. 2. There was no need for exchange. 3. No exchange meant no need for money. The advent of specialization spurred exchange, which led to the earliest barter systems. BARTER Barter is defined simply as good-for-good exchange. There are two main difficulties with barter. 1. Double coincidence of wants: • Occurs when traders are willing to exchange their products for what others are selling. • It’s a single coincidence if I’m willing to exchange my apples for your oranges; it’s a double coincidence if you too are willing to exchange your oranges for my apples. 2. Rate of Exchange: • The rate at which bartered goods are exchanged • How many apples per orange, for example. Arrived at during negotiations between the two bartering parties; these negotiations are transaction costs because they take time which might otherwise have been used better (opportunity cost) As the economy became more complex, with more producers and more consumers, barter became increasingly cumbersome. Number of goods produced and exchanged increased, so the negotiation of exchange rates became increasingly complicated, as there was no common measure of value. ADVENT OF MONEY Money was designed to solve the problems that arose from the earliest barter systems. Money is anything that is generally accepted by custom or law...
Words: 952 - Pages: 4
...[pic] MONEY Income – доход Earned income – заработок Unearned income – рента, нетрудовые доходы Private income – частные доходы To live on one’s income – жить на свои средства To live within/ up to one’s income – жить по средствам Exceed/ live beyond one’s income - жить по средствам Income tax – подоходный налог Salary – оклад, зарплата To gross (coll) – we grossed 1,000$ - мы получили общую прибыль в … Payment – оплата, платеж, уплата Overtime payment – плата за сверхурочную работу He made a cash payment of 50$ - он уплатил наличными 50$ Pay – плата, зарплата, жалование; платить A pay cut – снижение зарплаты A pay increase – повышение зарплаты On half pay – на полставки They are paid by the hour - они получают почасовую оплату He paid his way through college – он сам зарабатывал себе на обучение To pay off one’s debts – рассчитываться с долгами Pay-day – день зарплаты Bonus – премия, премиальные A bonus job – работа с премиальным вознаграждением Royalties – авторский гонорар, отчисления автору пьесы Wages – заработная плата He gets good wages - он хорошо зарабатывает A living wages – прожиточный минимум Tips – деньги на «чай» Commission – комиссионные Basic earnings – основной доход, заработок Extras – дополнительный доход College grant - стипендия Scholarship - стипендия Child benefit – детское пособие Maternity benefit – пособие по беременности и родам Pension - пенсия Dole money...
Words: 23644 - Pages: 95
...What Is Money and Why Do We Need It? Lesson Plan #1b: The Many Forms of Money Lesson Plan #1c: Plastic Payment Lesson Plan #1d: Smart Cards Lesson Plan #1e: Paying On the Internet Lesson Plan #2: An Experiment in Barter Exchange Lesson Plan #3: How Do You Pay? Lesson Plan #4: How Do You Pay? The Evolution of Money Instructor’s Note: The first five lesson plans (#1a through #1e) are designed as a modular set to be used together. They consist of a series of discussions covering various parts of the video. You may use them in several ways. One is to alternate between discussions and watching segments of the video. There are three pause points on the video. The discussions are designed to fit with these points. The first lesson (#1a) fits before the video begins; lessons #1b through #1d fit well at the three pause points; and the final one (#1e) fits best at the end of the video segment. Alternatively, the video can be viewed without interruption and the discussions divided between topics to be discussed before and after viewing. No continuity will be lost if some discussions are skipped. Because much of this material may be unfamiliar to teachers, each of the lessons has an extended presentation of background information for teachers. This information, along with additional materials from the references cited in the section called “For More Information,” should help you to be an informed discussion leader. Lesson Plan #1a: Grade Level: Time Required: What Is Money and Why Do...
Words: 11615 - Pages: 47
...The History of Money THE HISTORY OF MONEY From Its Origins to Our Time This was the final draft of the English text of "Une Histoire de l’Argent: des origines à nos jours" - www.autrement.com/ouvrages.php?ouv=2746710306 - published by Autrement in Paris in November 2007 with a few minor changes in the final French text. I am very grateful to Philippe Godard - www.autrement.com/collections.php?col=277 for his editorial support, and to Autrement for allowing me to make the English version accessible here. INTRODUCTION This book is about the history of money: how did it begin? how has it evolved to the present day? what has it enabled humans to achieve? and why do so many people in the world today have problems with it and suffer from the way it works? The book is also about the future: how may money develop further? how might we want it to develop? Humans are the only creatures that use money. Animals and birds and insects and fishes and plants exist together in the world without it. But in human societies the earning and spending of money has become one of the most important ways we connect with one another. Most of us have to have money. We need to get enough coming in to match what we need to pay out. We all need to understand at least that much about money. But there is more to it than that. Over the centuries, money has reflected changes in politics and government, in economic life and power, in science and technology, in religious and other cultural beliefs, in family and...
Words: 12180 - Pages: 49
...Money Money has three functions which are unit of account, medium of exchange, and a store of value. Unit of account is the money function in which money is used as the common benchmark to designate the prices of goods and exchange throughout the economy. Unit of account also known as measure of value means that money is the measuring unit for prices. For example a 1 liter bottle of soda costs $2 and a 2 liter bottle of soda costs $3.75. You understand this and are able to compare the prices. Money is used in exchange for the price of goods. Price is how much money is needed to complete the exchange of the goods in interest. The next function of money is medium of exchange. This function is the function of money being excepted as payment for goods and services. Buyers get their purchased goods by giving money to the seller. The seller receives money for trade of their goods. For example a person wanting a bag of chips gives the seller money for the price of the chips. The seller receives the money in trade for the price of the chips. Money is a material that is commonly accepted as a medium of exchange. This medium of exchange takes place of the past barter system. The last function of money is store of value. This function means that money can be used to purchase the exact same goods in the future as it can today. Once a person receives a paycheck the money that that person does not spend is place into a savings. By saving money you are able to spend...
Words: 289 - Pages: 2
...Money Tumeka Smith Dec.14, 2012 Jason Friedline XECO210 Medium of exchange is an item that buyers give to sellers when they purchase goods and services(The Monetary System). Retailers’ sale their services or products, and money in exchanged for it that’s a medium of exchange. When I need groceries I go shopping. I like to shop for groceries at Food Lion or Wal-Mart. The groceries that I purchased are a medium of exchange. Money was transferred from me “the buyer” to the seller for the good I needed. A monetary transaction was made when I bought the groceries. A unit of account is the yardstick people use to post prices and record debt(The Monetary System). School loan are a good example of unit of accounts. My loan repayment amount wasn’t determined by the quantity of goods and service but, by dollars. This is how financial aid would measure my record of economic value. A store of value is an item that people can use to transfer purchasing power from the present to the future (The Monetary System). An example of a store of value would be stocks. Stock broker are usually given money to make future purchase stocks for the buyer. The stock broker will hold the buyers money for future purchases when they see fit to buy the appropriate stock. The stock broker holds all the power to purchase the stocks for their client. Traders also use store of value. Traders may exchange goods for money or nonmonetary assets, and hold them for future purchasing power. Reference:...
Words: 266 - Pages: 2
...Without money now days, people would be miserable. Money solves lots of problems, and sometimes even causes the problems. We currently live in an economy in which we need to spend every dollar wisely. No one ever really wondered where money actually came from, how it all happened. How did a piece of paper gain the power to own a person’s soul? Before money, people bared. They simply exchanged a good service for another good service. For example, a bag of rice was exchanged for a bag of beans. Metal objects began being introduced as money in around 5000 B.C. The Lydian’s became the first in the Western world to make coins. Countries all around were beginning to use coins for different values. Metal was used because it was easy to deal with, work with and most importantly, could be recycled. It became easier for people to compare the cost of certain items people wanted using coins. The earliest known paper money started in China, in around AD 960. It became very common worldwide. Making money out of paper was an idea that was loved by all since it was of less value to make. Representative money was traded/exchanged for a certain amount of silver or gold depending on the value given. For most of the 19th and 20th centuries, the majority of currencies were based on money through the use of the gold standard. Soon, representative money moved on to be called Fiat money, which came from the Latin term ‘let it be done’. Money began to be given a value by government which enforced...
Words: 416 - Pages: 2
...Money is one of the most important elements of economic science. It is truly a great invention for man. Every body is familiar with it and uses it in one form or the other. Although in final analysis, it is the real goods and services, which can satisfy our wants, but money is the intermediary. It is through money that we get access to goods produced by others. Money is running through economics system as blood is running in our body. In a way, money is much simple a nod common thing that even a child of two or three knows that money should be obtained and spent. But it is very difficult to define it. It may be defined as “Money is anything that we widely used in payments of debts” “Any thing which is widely accepted in payment for goods or in discharge of other kinds of obligations” (Robertson) “Money is the modern medium of exchange and the standard unit in which prices and debts are expressed.” (Samuelson) From the above definitions it is easy to conclude that money is any, material, which is commonly accepted and generally used as a medium if exchange for all types of transactions. Thus all kinds of currency notes and coins plus cheque deposits, etc can be regarded as money. FUNCTIONS The moneys primary functions are • Medium of exchange • Measure of value • And store of value MEDIUM OF EXCHANGE Money is used as an intermediary for trade, in order to avoid the inefficiencies of a barter system, which are sometimes referred to as the 'double coincidence...
Words: 1455 - Pages: 6
...Money Donnie Stidham XECO212 November 27, 2010 Sara Sheikh Money As a unit of account, money may serve its most useful purpose. Money can easily be divided into smaller units of measure without losing any value, which allows for a more efficient system of trading. There is no difference in value from a $100 dollar bill and ten $10 dollar bills. The consistency of a dollar as a unit of account in terms of every dollar has the same value regardless of situation; its interchangeable qualities also enhance efficiency and access. The barter system has many faults and inefficiencies that bring about a need for a more effective means of trade. Money seems to serve the purpose as a medium of exchange between people. Money is a credible, reliable, and documentable means of transacting. Specialization within the labor markets add to the need for such a medium of exchange as bartering specific skills or products for other skills or products has many counterproductive attributes. As a store of value, money must have the trust of the people utilizing it as a respectable manner of trade and the value stays consistent. Money must maintain a given value, although some degree of devaluing may occur and be accepted as common [inflation]. Money has lost some of its value in terms of storing for future use because many other methods may serve a better, more efficient means of storing. Storing money in a pillow is less efficient than in an account drawing interest, or purchasing...
Words: 383 - Pages: 2
...qwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwer...
Words: 321 - Pages: 2
...Week 6 – Day 5 - Checkpoint XECO/212 Money From the early settlers to the people of today, money has been at the forefront of our existence. When trade began and the settlers started to learn the value of their skills and began to barter, who would have known money would grow into such a commodity. There are several functions of money, the first being that money acts as unit of account, because it allows us to provide a good or service to someone and get money for it in return. An example would be going to work every day and getting a paycheck at the end of the week for doing what the company asks of me. Money is a medium of exchange because although it is like barter, when you provide a service you get paid money for your expertise. Again, if you brought your car to the mechanic because the tire was flat and he put on a new tire, you would pay him for his expertise with money. The best and third function of money is the store of value. You can take it and store it to use another time. For example, I get paid every week and if I take half of my paycheck and put it into the bank, I hope over the next ten years it will retain its value and even earn interest. I do not think that putting my money in the bank will ever make it lose money. So I am not spending all of my money at once, I want to save some for a future...
Words: 269 - Pages: 2
...MONEY & BANKS …. THE HIDDEN TRUTH BEHIND GLOBAL DEBT . 1) What is money... how is it created and who creates it? 2) Why is almost everyone up to their eyeballs in debt... individuals, businesses and whole nations? 3) Why can’t we provide for our daily needs - homes, furnishings cars etc. without borrowing? 4) How much could prices fall and wages increase if businesses did not have to pay huge sums in interest payments which have to be added to the cost of goods and services they supply...? 5) How much could taxes be reduced and spending on public services such as health and education be increased if governments created money themselves instead of borrowing it at interest from private banks…? "If you want to be the slaves of banks and pay the cost of your own slavery, then let the banks create money…" Josiah Stamp, Governor of the Bank of England 1920. WHAT IS MONEY....? It is simply the medium we use to exchange goods and services. * Without it, buying and selling would be impossible except by direct exchange. * Notes and coins are virtually worthless in their own right. They take on value as money because we all accept them when we buy and sell. * To keep trade and economic activity going, there has to be enough of this medium of exchange called money in existence to allow it all to take place. * When there is plenty, the economy booms. When there is a shortage, there is a slump. * In the Great Depression, people wanted to work, they wanted...
Words: 5999 - Pages: 24
...Toastmaster’s Speech Project No 5. "Money” THE OBJECTIVE OF THE SPEECH (“YOUR BODY SPEAKS”): * Use stance, movement, gestures, facial expressions, and eye contact to express your message and achieve your speech’s purpose. * Make your body language smooth and natural. WHAT MY AUDIENCE WOULD SAY AT THE END OF MY SPEECH: * The speaker enlightened me by providing his personal point of view about how people should treat money. * The speaker demonstrated proper use of gestures and movement by narrating his experience on the day he lost his ATM. * The speaker enlightened us that money isn’t the reason why we are born in this world. Catching Opening: Good evening! I am happy to join with you in tonight’s joint meeting between Diamond and Silver & White Toastmasters Club. I doubt if there is anyone that would argue the fact that in our modern society money is the most important commodity in any persons’ life. [Pause, look at the audience faces] Some people consider it as more important than water, air and gravity which are the necessities for human survival and comfort. According to others, money is the root cause of all evil. Tonight, I am going to tell you the story on how I realized the importance of money. Supporting Body: (Purpose is to PERSUADE) Body Gestures: Scratching of head/hair – portray confusion/don’t know what to do (when atm was not in pocket) Tightening of fist – “sinisisi” whoever got hold of my ATM Rythmic Beating of Fingers – where...
Words: 1309 - Pages: 6
...of Money, Banking & Financial Markets | 2014 | Ch 3 Sheet 3 | Instructor: Hala A. Fares | Tutor: Sarah Mostafa | MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) To an economist, ________ is anything that is generally accepted in payment for goods and services or in the repayment of debt. 1) _______ A) credit B) money C) wealth D) income 2) Money is 2) _______ A) a flow of earnings per unit of time. B) anything that is generally accepted in payment for goods and services or in the repayment of debt. C) always based on a precious metal like gold or silver. D) the total collection of pieces of property that are a store of value. 3) Currency includes 3) _______ A) paper money, coins, checks, and savings deposits. B) paper money and coins. C) paper money and checks. D) paper money, coins, and checks. 4) The total collection of pieces of property that serve to store value is a person's 4) _______ A) wealth. B) money. C) credit. D) income. 5) A person's house is part of her 5) _______ A) money. B) income. C) wealth. D) liabilities. 6) ________ is used to make purchases while ________ is the total collection of pieces of property that serve to store value. 6) _______ A) Money; wealth B) Income; money C) Money; income D) Wealth; income 7) ________ is a flow of earnings per unit of time. 7) _______ A) Money B) Income C) Wealth D) Currency 8) An individual's annual salary is her 8) _______ A) income. B) money. C)...
Words: 3207 - Pages: 13
