Minggu, 01 November 2015

Understanding Money, Money History and Functions of Money

Understanding Money, Money History and Functions of Money
Understanding money | History of Money | Function Money | As the spoken word money in their daily lives, the sense of money can be a variety of meanings, but for economists, money has a special meaning. To avoid confusion, you should have a clarity of how the word money used by economists differ on the usefulness usual.
Economists define money dijuga money supply is often referred to as something that is generally accepted in payment for goods or services over the payment of debt. Currency consists of notes and coins, fits perfectly with this definition and is a form of money. When most people talk about money, they're talking about the currency (currency) paper money and coins. For example, if someone comes to you and says, "Your money or your life". You would soon hand over all your money rather than ask first, "What do you mean by money?".
Defining money purely as a currency is too simple for economists. Therefore, a check can also be accepted as payment for purchases, checking accounts can also be considered as money. Even the definition of money in the broad sense is also required for other forms such as savings can serve as money that can be changed quickly and easily into a currency or a checking account. Thus, there is no single definition, the definition of a true right of money or money supply, even for economists though.
To further deepen the problem, said the money is often equated with wealth. When someone says, "Bolas rich-he has a lot of money" could be in question is Bolas not only has a lot of currency and a large balance in the account gironya, but also have stocks, bonds, four cars, three houses and a yacht. Thus, the "currency" is considered too narrow to define money, the use of other more famous too broad. Economists make a distinction between money in the form of currency, checking accounts (savings) and other forms that are used for transactions and wealth (wealth), a set of forms property that can be used to store the value. Wealth includes not only money but also other assets, such as bonds, stocks, artwork, land, furniture, cars and houses.

Communities also use the money to state what is called by economists as income, as the following statement, "Sheila luring certainly very clever; he has a good job and earn a lot of money" Revenue (income) is revenue streams at any given time. If someone says that he has $ 1,000 of income, you can not say that is a lot of money or not because you do not know that the income per year or per day or per month.

Understanding Money According to Experts

R.J. Thomas said that "Money is something that is readly and Generally Accepted by the public in payment for goods, services and other valuable assets and for the payment for debts" means that money is an object that is easily and commonly accepted by society for the payment of the purchase of goods, services and other valuables, and for repayment of debt.
Sir Dennis Holme Robertson said that "Money is something accepted in payment for goods" means money is something that can be received in payouts to get the goods.
AC Piguo in his book "The Veil Of Money" is money is a medium of exchange.

Money and function of money

Definition of money in the economy traditionally defined as any means of exchange that is acceptable in general. A medium of exchange that can be any object that can be accepted by everyone in the community in the process of exchange of goods and services. Money is called currency Goods.
Whereas in modern economics, money is defined as something that is available and is generally accepted as a means of payment for the purchase of goods and services as well as other valuable property even for payment of debts. Some experts also mentioned functions of money as a means of delaying payment.

History of Money

History of Money

Before the money was found and used as a medium of exchange, trading is done through a system of exchange or barter. To do barter, historically must qualify the double coincidence of wants or needs that arise together. This requirement implies of course that needs to be in limited quantities and little.
(History of Money) With the increasing number of human needs, the more difficult to fulfill this requirement so as to encourage people to find a commodity that can be used as a bartering tool many communities. The use of substitute goods exchange hereinafter called making money someone can sell its goods without the requirement of double coincidence want. With the money he earned, he can exchange the goods needed but he lacked.
In the history of money, explained that the money never in the form of the two metallic gold and perak.Keterbatasan into surplus so the price remains stable and high, like many people in the community as well as generally accepted and not easily damaged and can be broken down into smaller units.
(The history of money) At the beginning of the use of gold and silver as a medium of exchange (money), is used in liquid form. It is quite troublesome because it requires the scales. Then, the difficulty is overcome by the introduction of the system of coins or coins. In the coin imprinted value of the coin is called the nominal value.
Interestingly, in the history of money, in contrast to the money today. Money metals such as gold and silver have a nominal value equal to the intrinsic value. This is because the listed nominal value equated to the value of the commodity. For example, one ounce of gold will be stamped with the label 1 ounce of gold so that there is no difference at all. Cases where the face value and intrinsic value referred to the money commodity or commodity money.

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