money [Theme] Page 1

The value of money is a variable parameter. The dynamics of the value of money, determined by the quantity of goods, is characteristic only of real money, because the resulting excess of gold money settles in the form of an ordinary monetary commodity, whose name is gold. Symbolic money is monofunctional (unlike gold money, which is characterized by multifunctionality), it can be only money, and nothing else - it cannot turn into a commodity, as gold money easily did. Of course, it is easier to print money than to create real goods.

Carlos, a worker in the banking industry, proposed marriage to her on their first date. Gabrielle was touched by a man's stingy tears. However, she soon learned that tears accompanied all his major transactions.

Even in the ancient world, states mastered their most favorite pastime - making what only they were allowed to do: money. And nothing could stop them. It would seem that gold money (where was paper money before it!) should have objectively calmed down the money-creative activity of the state - not at all: through manipulations with the hallmark of gold coins, the state always had additional money. The people called some of the crown bearers that way: for example, Philip IV the Counterfeiter.

The state is an unusual, amazing market entity. All market entities, except the state, produce goods. The state is the only market entity that has a monopoly on the right to produce and actually produces a unique product - money. The state produces money, including for super-profitable expenses.

We know only three market subjects - the household (population), the firm (producers), and the government (the apparatus of government officials representing society and its economic interests). Households and firms must include their expenses into their income. They can, of course, spend more, but it will be borrowed money that must be returned within the agreed time frame, and with interest. Only the state is in a different situation - its expenses may exceed its income.

Banks are an integral part of the economic system. The essence of banking is to generate income from the disposal of temporarily free funds. Therefore, banks strive to attract the maximum number of depositors who agree to transfer money to the bank for temporary use for a certain fee, and then provide these funds for a higher fee and for a certain period of time to those who need them.

Cash has the property of immediate, direct exchange for any other asset with zero exchange costs. Cash is a completely liquid asset.

If gold money performed many functions, then paper money could only perform one function - means

Three centuries ago, substitutes for gold appeared in the form of paper money. And throughout this period, paper money truly represented gold, freely exchanging for it. And only in the 70s. XX century a grandiose, inevitable event occurred - money broke its connection with gold, the economy entered the era of paper

For a very long time, money was made of noble metals (gold and silver), which nature, as if specially created for this role. The physical properties of precious metals (homogeneity, strength, intrinsic value) ideally met the requirements for a monetary commodity. But, as soon as gold established itself in the role of money, it turned out that it did not necessarily have to participate in circulation, but could be replaced by any of its representatives.

For almost all of economic history, money has been a commodity.

The primary subjects of capital supply are households (population), which have temporarily free (extra) money. By offering capital, households refuse, for a certain reward, the alternative use of capital for consumption. Therefore, for the subject of the supply of capital, interest acts as income. The higher the interest rate, the more individuals will act as sellers on the capital market.

Even if you build a church with stolen money, only the theft will count.

If you have nothing but a heart, then only a transplantologist needs you. The heart itself cannot be evil; it is money and everything else that makes it evil.