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What is the importance of the one dollar bill?
The importance is it is the smallest paper denomination in the United States. It symbolizes a faith in a fiat currency. The paper its self has no intrinsic value but the cotton and ink it's made of. It's only value is that the general public accepts it as money even though, our paper no longer is backed by gold or silver. The word LIBERTY is on United States coinage but NOT on paper money. Coinage has intrinsic value because of the value of the metal.
What type of money has value based on intrinsic worth?
Commodity money
What kind of money has no value except as a medium of exchange?
The term "fiat money" means money backed by the credit of the issuer, and has no intrinsic value.
When paper money is demonetized its intrinsic value becomes?
The 'intrinsic' value of ALL paper money, is HOW many BTU's it will produce when you burn it to keep warm. It gets its "value" when people think it is valuable and are willing to trade REAL items for it. But ask yourself this. If somebody offered you Monopoly money, or Confederate Currency for your house or car,, would you take it? Of course not. But did you know, in the world's history, there has been more than 400 different paper currencies and ALL of them eventually fell to zero? (average time to crash? Less than 100 years.) Dump your bucks and buy real silver and gold.
What is the difference between a commodity form of money and token money?
A commodity form of money is when the value of the money is determined by the intrinsic worth of what makes it. For example, if the money is salt (as was used by the Roman empire) then the value of the money is the same as the value of the same weight of salt in another form. A token form of money is when a form of money (for example a coin) is created that has little or no intrinsic value, but has value because a company or person has agreed to exchange the token for a good or service of value. One example is bus tokens - small coins that can be presented on buses in exchange for transportation.
Who said all paper currencies eventually reach their intrinsic worth?
The French philosopher Voltaire is credited with the quote;"Paper money eventually returns to its intrinsic value ---- zero."
What is the importance of the one dollar bill?
The importance is it is the smallest paper denomination in the United States. It symbolizes a faith in a fiat currency. The paper its self has no intrinsic value but the cotton and ink it's made of. It's only value is that the general public accepts it as money even though, our paper no longer is backed by gold or silver. The word LIBERTY is on United States coinage but NOT on paper money. Coinage has intrinsic value because of the value of the metal.
What is token money?
token money is a money which its intrinsic than paper money
What was anicient paper money made from?
There was no ancient paper money. Every coin had intrinsic value so they would never be worthless. Thus, coins were made from gold, silver and bronze and had a value mostly corresponding to their metal worth (although usually they'd be worth slightly more than just pure bullion) The earliest paper money came from a short experiment in China where the money was printed on paper or bark. But in general, intrinsic value ruled supreme in ancient/medieval times.
How do you determine whether the currency option is in the money?
"In the Money" is a term used in option trading as a determinate to if an option has "Intrinsic Value." In the Money, does NOT mean in profit. There are two components to an option value, TIME VALUE, and INTRINSIC VALUE. Time Value + Intrinsic Value = Option Premium. When the market price is above the option strike price of a CALL option, that option is considered "In the Money" i.e. having intrinsic value. When the market price is below the option strike price of a PUT option, that option is considered "In the Money" i.e. having intrinsic value.
What type of money has value based on intrinsic worth?
Commodity money
What is the difference between fiat money and token money?
Token money is a type of money whose intrinsic worth is less than its nominal value eg its value as money is less than its value as metal while fiat money is a type of money which intrinsic value is more than its nominal value.
What is the difference between a real asset and a financial asset?
A real asset is a tangible asset like gold or real estate. You can hold it or place your hand on it. It has intrinsic value in and of itself. A financial asset is not tangible. Instead, its existence is "represented by evidence of its existence such as a paper certificate, like money, a savings passbook, a stock certificate, or a bond. The paper in money has no intrinsic value. Its value is derived by virtue of what it represents.
What is the difference between face value and intrinsic value of money?
face value is the value written on the coin(currency),and intrinsic value is one which when the same coin is melted and that metal is sold the cost of that. before tuglak's rule the face value of the currency was equal to intrinsic value in india.
Is cash for gold trustworthy?
Gold is full bodied money with intrinsic value for the face value against the representative paper money with reserve kept in form of gold as legal tender money and therefore trustworthy only if the quality,value and ownership of the gold will not entail any legal hassle.
Money is the most liquid asset available because?
it has intrinsic value
What kind of money has no value except as a medium of exchange?
The term "fiat money" means money backed by the credit of the issuer, and has no intrinsic value.
