Money is any object that is generally accepted as a payment for goods and services. Money playing an important role in our business trades because it enable us to buy goods and services to satisfied our needs and wants in our life. All types of money should be judge on how well to accomplish the function of money (Morton). The function of money which is includes medium of exchange, unit of account, and store of value and standard of deferred payment. These functions make money to be more durable, exchangeable, and valuable in our business trades.
Medium of exchange in modern economies can be defined as currency. Money performing an important function in the society, people uses money to buy and sell goods exchange for money (Money functions, 2014). Money make transaction become easier, without money, transaction have to be conducted using the barter system. Barter system will only happened in double coincidence of wants, which mean without coincidence of wants between the parties, the trades would be successful. Barter system can be defines as a method of exchanging goods or services without using the money. Everyone is willing to accept money in payment for goods and services. Medium of exchange will make trades become more efficient and traders can spend more time doing production.
The second function of money is unit of account. Unit of account is being used as the common benchmark to measure of the value of goods and services being exchanged (UPADHYAYA, 2012).This function enables both supplier and purchaser of a good to make decisions about how much to supply and how much to purchase. By using barter system it is very difficult to decide as to how much volume of goods should be given in exchange of a given quantity of c...
... middle of paper ...
...cteristics, 2011).If government increase the money supply , it will leads to inflation occur in our country, because if common things are used as money, prices of goods are likely to be very high because common things are easier to obtain. Government playing an important role because they has the responsibility to maintain an adequate money supply to the market based on their monetary policies.
The last characteristic of money is it should be acceptable to all. Acceptability means that everyone must be able to use the money for transactions (money characteristics, 2011).It is convenient if a type of money is accepted worldwide. This characteristics acceptance of money is accepted by the public as the medium of exchange.
In my conclusion, money is important for us because it makes our transactions become more easier and effective. We cannot live without money.
Another satisfying material that a person can own is money. Money is something that is very important to possess. Owning money can satisfy a person’s hunger, shelter, and just about everything it takes for that person to live. A person would not be satisfied if they did not own any money. They would be depressed and have to live on the streets.
Money is something that can either be used for the greater good of society, or it can be contorted into something that is detrimental to society, it all depends on whose hands that money happens to fall into. Human tendencies begin to change once people come to have money, the lavish and selfish lifestyle begins. Entitlement comes with having money because money gives people what they want which makes people think they are entitled to get everything they want. In The Great Gatsby Fitzgerald portrays that money is the root of all problems with can ultimately lead to loneliness and careless behavior.
The first type of economic system that they movie shows is a traditional system. A traditional economy is an economic system in which the allocation of scarce resources and other economic activity is the result of ritual habit or customs. In other words a traditional economy is a barter or trade system, everybody decides WHAT WHEN and FOR WHOM. When the video first starts the Mochans had to trade all over the island to acquire what needed. After a while they had enough of trading the chief decided to switch to currency instead of trade.
There were many reasons for the invention of standardized money. First, nobody wanted to carry 30 pounds of barley to the trade city that could have been 100 miles away. Second, it was difficult to determine the true cost of different goods. For example, if somebody wanted to buy milk for his family, it would almost be impossible to figure out a fair exchange for grain. Finally, the barter system limited the people who would trade with each other. Not everybody would want to purchase milk or grain. In sum, there were too many complications and inefficiencies in a barter economy.
The role of money in people's day-to-day lives is quite amazing when it's put into perspective. The primary reason most Americans get up in the morning is so they can go out and make money. Money buys things; money influences people; money keeps us ali ve; money makes us happy. Or does it? In Fences, by August Wilson, the Maxtons get their money when Gabe's head is shot in the war. In A Raisin in the Sun, by Lorraine Hansbury, the Younger family gets their money when Walter's father dies.
Today money is faith in the person paying us and belief in the person issuing the money he uses or the institution that honors his money. This trust has no end, it can be extended to a greater number of individuals. The establishment of money freed individuals from dependence on land as an essential resource for production and freed commerce from the need to barter and trade.... ... middle of paper ...
Money, the media of exchange for products and services, provides things people need, like food, clothing, shelter, or medicine. People spend most of their life looking for it. My parent for example, works from sunrise to sunset to obtain it. The more money people have the more benefits they can get, because they will be able to get a bigger and better houses, clothes, or food. Less money means stress in bill payments, gas prices, and food prices. With money, people can fulfill their material need. However, money cannot buy everything such as happiness, friendship and love, health, and appetite.
"Money has a time value associated with it and therefore a dollar received today is worth more than a dollar to be received in the future" (Block, Hirt, 2005). The time value of money may be based on the concept that one would prefer to receive a fixed payment today rather than the same fixed payment at a future date. This paper discusses some of the key components of time value of money and identifies the application of time value of money in various businesses.
The invention of money was a major improvement in peoples’ lives. In the past, people usually had to travel all day to find the person who is willing to exchange their goods. In addition, the goods people want to exchange did not have the standard value of measurement. This led to unequal exchanges. Furthermore, it is not convenient to carry heavy goods from one place to another for an exchange. To solve these issues, money will be the only solution. Later, people tend to develop money from cowry shells to credit cards for the convenience and to improve their society.
The invention of money is perhaps one of the greatest achievements of human civilization. From the very beginning of society, people have used money to circumvent the difficulties of bartering and to foster trade and commerce. Since then, money has come a long way. No longer do we need to rely on silver coins, cocoa beans, or even anything of intrinsic value to conduct our business; today, we use paper currency, which is convenient and easy to carry around. But slowly, we are moving into the digital age of money, an age in which less of our money is actually tangible and more of it is just data on a computer server.
The purpose of money is to convert production into consumption. A generous person pursues the idea of spending everything he makes from his own consumption. A generous person could be out of money, but he is not because he has the virtue of liberality. He knows how much to spend. A poor person can be generous and he will try to give away the right amount at the right time from what he has.
Money in a traditional sense no longer exists. Money is becoming much of a concept than a physical material, and most ordinary bitter have not see the reality of the switch. People today are using credit and debit cards on a regular basis and in everyday situations such as meal purchased at fast food, highway tolls, clothing, groceries, gas stations, etc. all of these means of systems could be regarded as a cashless society or world. The question we might ask ourselves is what is a cashless society? What are the implications of living in a cashless world?
Today, couple of monetary forms are completely upheld by gold or silver. Subsequent to most world monetary standards are fiat cash, the cash supply could increment quickly for political reasons, bringing about inflation. The
Inflation is one of the most important economic issues in the world. It can be defined as the price of goods and services rising over monthly or yearly. Inflation leads to a decline in the value of money, it means that we cannot buy something at a price that same as before. This situation will increase our cost of living.
“Money is number and numbers never end if it takes money to be happy your search for happiness will never end.” (Bob Marley). For the majority of people in our modern-capitalist world, money is the first thing, and sometimes the only thing that measures success in life. Money can buy power. Money can buy fame. Money can buy time. Sometimes money can even buy a life. So money has become the first common goal for everybody. There are many different perspectives, and how people view the world, in terms of success, and money. Money is not the root of all evil, but the love of money is the root of all evil.