MONEY, FOREIGN EXCHANGE & FINANCE.


MONEY, FOREIGN EXCHANGE, FINANCE.


Watch the video, answer the following questions.

  1. How are money and currency defined?

  • Money: a container to store economic energy until people are ready to deploy it.

  • Currency: an impostor for money that steals both time and freedom.

  1. What are the differences between currency and money? 

  • Currency | Money

  • Medium of exchange Medium of exchange

  • A unit of account A unit of account

  • Portable Portable

  • Durable Durable

  • Divisible Divisible

  • Fungible (Interchangeable) Fungible (Interchangeable)

  • x A store of value 

  •   x Maintains over a long period of time

  1. What are their most important characteristics? Personally, I think that portability and interchangeability are among the most important characteristics that these two concepts have.

  1. What is a Fiat currency? A currency that exists at the dictate of a government; it makes the currency official, without it money is just paper.

  1. What are its characteristics? 

  • It has no intrinsic value

  • Valueless unless the government deems it so

  • It doesn’t have durability

  • 100% failure rate.

  • None has stuck around for very long.

  1. 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.

  1. What does “store of value” refer to? The acquisitive or purchasing power that currency possesses. 

  1. What was the currency used in the past? Gold and silver.

  1. 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.

  1. What is a “solving system”? It would be applicable and maintainable if we used metals as currency - it would help keep governments under control.

  1. What happens when governments expand the currency supplies? Inflation, which makes prices rise.

  1. What is barter? An exchange of goods that people used to practice where things of value were our money - that got too complicated over time, so money took over.

  1. What is Quantity of Easy? It refers to currency creation.

  1. What is the tendency of QEs around the world? The tendency refers to the way governments have increased the amount of money we have all around the globe - decreasing the value of it in the process. QEs have caused riots, wars and violence.

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

Before I completed the assignment, I did not know that there were distinctions between money and currency - I always assumed that they were the same concept but now I understand that although they have the same uses they are distinct in some very important characteristics. I think that the topic of money and economy can be confusing sometimes but new concepts like fiat currency, solving systems and barter were very easy to understand and gave new light to similar topics I had previously learnt. The importance of understanding our market is vital to consumers, because it helps them make better financial decisions in their everyday life.


 Name: Judith González Cardona

NUA: 117532

Comentarios

  1. Cinthia Segura Pérez21 de diciembre de 2021 a las 15:20

    I love the definition you put in point one because if we see it that way, your answer has a lot of coherence; when I put my definition, I didn't know how to explain it, but you summarized it in a very clear way.

    ResponderEliminar
  2. Fernanda Ramos21 de diciembre de 2021 a las 15:44

    I agree with what you publish and it is very good to know all this content that is widely used on a daily basis.

    ResponderEliminar
  3. Lucía Hernández21 de diciembre de 2021 a las 21:54

    I like the definition of currency and money at the beginning of your article. At first it had seemed very dramatic to me that the currecency was equated as the equivalent of a scam, however after entering the subject I understand the seriousness of the dangers that the loss of the value of the currency entails and its tangible and immediate impact on power. purchasing power of the population. It is thus its instability that makes it equate with an illusion

    ResponderEliminar
  4. Cecilia Massat22 de diciembre de 2021 a las 9:01

    The way you explained the difference between currency and money is very understandable, knowing something it’s valuable and can count as currency even though it isn’t money is interesting. Great information, thank you for sharing.

    ResponderEliminar

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