Introduction Something that almost every person in America has in their wallet is money, whether it be 20 dollars or a one dollar bill. We all use money every day to eat, survive, and get around. The money supply in America can effect a single person to a large firm like the Apple Corporation. In this paper I am going to discuss the purpose money, how the government has the chance to influence the amount of money in our economy, and the monetary policy affects the Apple Corporation. The Purpose and Function of Money What is money? Money is a medium of exchange, a store value, and a unit of account. When you think about it, money in America is just a piece of green paper or a coin with an important person on it. Even though it is a piece of paper or a coin we give it value because that is the method we use to trade. Before we had money people would have to barter, which is exchanging a good or service, for another good or service. For example, what if you were a singer and you wanted a pair of shoes. You said to the store owner I will sing you a song for this pair of shoes. What if the store owner didn't want to hear you sing for the shoes? You would have to find something else to trade for those shoes. This is why having money as a medium for exchange is very beneficial because everyone in the United States accepts money as a method of payment and there is no need to have to find something to barter. Using money for payment or exchange is called a monetary system. "Under a monetary system money is exchanged for goods or services; goods and services are exchanged for money when people sell things"(Case, Fair, Oster, 2012). Mone... ... middle of paper ... ... References Apple on the Forbes World’s Most Innovative Companies List. (n.d.). Information for the World's Business Leaders - Forbes.com. Retrieved October 18, 2013, from http://www.forbes.com/companies/apple Bernanke, C. (2013, June 19). Transcript of Chairman Bernanke’s Press Conference June 19, 2013 . federalreserve.gov. Retrieved November 16, 2013, from http://www.federalreserve.gov/mediacenter/files/FOMCpresconf20130619.pdf Bishop, (2013) Lecture for week 10: Chapter 10 Money Bishop, (2013) Lecture for week 11: Chapter 11 Money Case, K. E., Fair, R. C., & Oster, S. M. (2012). Principles of Macroeconomics (10th ed.). Mui, Y. Q. (2013, April 17). Business . The Washington Post. Retrieved November 16, 2013, from http://www.washingtonpost.com/blogs/wonkblog/wp/2013/04/17/can-monetary-policy- create-jobs/
-2. The background of the financial crisis.—what kind of monetary policy the federal reserve made?
Money makes exchange much easier, because people can trade their goods for money and use the money to buy other things. In the Bible money was silver or gold, a precious metal, and America was on a gold standard throughout most of her history. In 1933 we shifted to a silver standard and in 1968 our silver certificates were replaced with Federal Reserve Notes (Remy, 2008). Today’s paper money is not backed by anything except the government’s promise that it is good. Money with no precious metal backing allows the central government to spend more than it collects in taxes, because the Federal Reserve Board can print new money, thus increasing the money supply, anytime there is a need. This is what causes inflation and is one way that the Federal Reserve Board has overstepped Biblical principles in economic policy. Greg Anthony writes that “one of the Biblical signs of a nation backsliding is the condition of its currency and the degree of honesty in its weights and measures” (Anthony, 1988, p. 28). When the money supply is increased, either through printing more money or credit-expansion, the purchasing power of the dollar falls, and businesses must increase the prices they charge to keep up with their own higher costs. Inflation encourages debt, deceives people about pay increases and future wealth accumulations, is a hidden theft tax, and decreases capital available for
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Money is the main source of power in the world, but in ways it can be viewed as good or bad depending on the situation. It has a negative connotation when mentioned by the word “acts”. “ Acts” means to perform a fictional role. Which shows that most things involving money are fake. Though humans associate being fake with being morally wrong,but its somehow acceptable if there is a greater power involved. Another definition for acts is to take action;do something. In this case to take an action can be either good or bad. There are many ways to come across money, but nobody cares if it is good or bad because it deals with a greater power.
There is perhaps no other political issue in our contemporary society that is more pertinent, pervasive, and encompassing than a nation’s economy. From the first coins used in Greece and the Asia Minor in the 7th century BCE, to the earliest uses of paper money, history has proven time and time again that the control of a region’s economy is absolutely crucial to maintaining social stability and prosperity. Yet, for over a century scholars have continued to speculate why the United States, one of the world’s strongest and most influential countries, has one of the most unstable economies. Although the causes of this economic instability can be attributed to multiple factors, nearly all economists agree that they have a common ancestor: the Federal Reserve Bank – the official central bank of the United States. Throughout the course of this paper, I will attempt to determine whether or not there is a causal relationship between the Federal Reserve Bank’s monetary policies and the decline of the U.S. economy. I will do this through a brief analysis of the history and role of this institution, in addition to the central banking system in general. In turn, I will argue that the reckless and intentional manipulation of the economy by the Federal Reserve Bank, through inflation and the abolishment of the gold standard, has led to the current economic crisis in the United States.
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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.
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innovative companies of the world due to the creation of differentiated products such as iPod,
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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.