MONEY, FOREIGN EXCHANGE & FINANCE.

 

MONEY, FOREIGN EXCHANGE & FINANCE.

ALBERTO ROBLES OLVERA                                                               NUA:  786486

1. How are money and currency defined?

 

Money: money which cannot be touched, neither it can be smelled, the money can be seen in terms of the numbers.

Currency: an impostor for money that steals both time and freedom. just the promissory note which is presented in the form of money.

 

2. What are the differences between currency and money?

 

Currency is a medium of exchange, it is an accounting unit, it is portable, divisible, and transportable, durable, and fungible.

 

Money is all the above, adding that it is a repository of long-term value.

 

3. What are their most important characteristics?

 

The portability and interchangeability are among the most important characteristics that these two concepts have.

 

4. What is a Fiat currency?

 

A currency that only has a backing from governments and countries, it does not have a real or tangible value.

 

5. What are its characteristics?

 

That they are not backed by gold or silver, by anything tangible and that can be devalued, it is only paper with value. It is based on the faith of governments. It doesn’t have durability, total failure rate and none has stuck around for very long.

 

6. What is money and currency used for?

 

They are used as a tangible representation of people’s labor or the value that material goods have, this way they can be exchanged as a form of payment.

 

7.  What does “store of value” refer to?

 

It refers to the level of power that a currency has within a market, the real value that a good has.

 

8. What was the currency used in the past?

 

Gold and silver.

 

 

 

9. What is the most beautiful way of money?

 

Gold, it’s born from stars and it’s everlasting. It also can be reshaped and has various uses, it has all the qualities that money needs to have, it doesn't go away and we can’t produce more.

 

10.  What is a “solving system”?

 

In the purchasing power of the currency, it is the government of each state that takes control and administration of the money.

 

11.  What happens when governments expand the currency supplies?

 

Money loses value, inflation and high cost of goods and services.

 

12. What is barter?

 

It is an exchange of one or more goods that are supposed to have a relative value.

 

13. What is Quantity of Easy?

 

It refers to currency creation.

 

14.  What is the tendency of QEs around the world?

 

When governments increase the amount of money, causing devaluation, wars between countries for power, to name a few.

 

Write a final reflection on the topic, mentioning what were the most important aspects you learned.

 

I consider that the aspect that most interested me, and that perhaps I will be able to continue developing, is the issue when we talk about the difference that exists between a political or financial system and us as producers or workers. Every certain number of years in our country and in the world, the control and administration of the economy of millions of people changes hands to be restored and managed by a new group of people who in essence are not necessarily economists but who decide autonomously to provide the Certainty that they will improve the quality of life of millions of people they do not know, and that in this sense they will provide value to the time and work of each one of them, managing to put a high or low number, in a way that is probably devalued depending on how they are. management capabilities. And that is what I liked the most about the video, since it usually talks about the political and economic relationship that exists around money, but very rarely about its social significance in our immediate realities.

THANKS FOR YOUR COMENTS.  :)