MONEY, FOREIGN EXCHANGE, FINANCE.

1. HOW ARE MONEY AND CURRENCY DEFINED?

Money is a medium of exchange, unit of account, is portable, durable, divisible and a store of value for a long period. Money, in the form of paper or coins, usually issued by a government and generally accepted at its face value as a method of payment.

Currency is all previous (except store of value) and fungible (my money has the same value than your money) Currency is the primary medium of exchange in the modern world, having long ago replaced bartering as a means of trading goods and services

2. WHAT ARE THE DIFFERENCES BETWEEN CURRENCY AND MONEY?

Currency it’s a piece of paper, a system of money. payment method, unit of account because it’s got number on it, fungible (interchangeable).

Money must be a store of value an maintain its purchasing power over long periods of time

3. WHAT ARE THEIR MOST IMPORTANT CHARACTERISTICS?

I think the things more important are store of value, medium of exchange and fungible

4. WHAT IS A FIAT CURRENCY?

Are based on confidence, and authorative order or official decree. It’s just worthless paper but when give it the special sing and they have the cult meeting the federal reserves, it suddenly becomes currency

5. WHAT ARE ITS CHARACTERISTICS?

As a medium of exchange, store of value, and unit of account.

6. WHAT IS MONEY AND CURRENCY USED FOR?

Currency is printing presses, and the paper money rolls off the printing presses and then give in the fiat designation which then makes the currency official.

Money is used to intermediate the exchange of goods and services; it is performing a function as a medium of exchange.

7. WHAT DOES “STORE OF VALUE” REFER TO?

Limited (money supply) and stable (purchasing power). Is an asset that maintains its value, rather than depreciating. Gold and silver are good stores of value because their shelf lives are essentially perpetual

8. WHAT WAS THE CURRENCY USED IN THE PAST?

Silver and Gold or exchange things they have for things they need it.

9. WHAT IS THE MOST BEAUTIFUL WAY OF MONEY?

10. WHAT IS A “SOLVING SYSTEM”?

11. WHAT HAPPENS WHEN GOVERNMENTS EXPAND THE CURRENCY SUPPLIES?

Eventually prices will rice. The increase in the currency supply will lead to an increase in consumer spending. Increased currency supply causes reduction in interest rates and further spending.

12. WHAT IS BARTER?

Barter is the exchange of materials or services for other objects or services, it’s different from the usual purchase since the money does not mediate as a representative of the value in the transaction. 

13. WHAT IS QUANTITY OF EASY?

This currency was created out of thin air and then given to the banks who paid themselves record bonuses in reward for crashing the world economy

14. WHAT IS THE TENDENCY OF QES AROUND THE WORLD?

Doing an insane deficit spending and expanding their currency supplies. In some countries have a positive impact on the economies but in emerging economies the impact is mixed. This is a global phenomenon.

WRITE A FINAL REFLECTION ON THE TOPIC, MENTIONING WHAT WERE THE MOST IMPORTANT ASPECTS YOU LEARNED.

I think the most important aspects are know the basic stuffs about money and currency. In my career, knowing the value and difference of both is very important, since they are basic concepts that I will always apply. It is good to have knowledge of the new tools and how governments use them to maintain the value of their currencies, to know how to apply the quantity of easy