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Commerce has always involved people trading items of worth - Mr. Smith has an object Mr. Jones wants, and vice versa. And a long time ago, both parties had to have actual objects - perhaps Mr. Smith has fish and Mr. Jones has beer. The problem is, if they're in Gloucester or Astoria Mr. Jones is going to have more fish on his hands than he knows what to do with. His only way out is to take the fish to a town where they have none and trade it for beer ingredients.
What else can I help you with?
Why should the price of commodities go up when there is plenty of paper money?
The price of commodities tends to rise when there is an abundance of paper money due to inflation. When central banks print more money, it increases the money supply without a corresponding increase in the production of goods and services, leading to a decrease in the currency's purchasing power. As people have more money to spend, demand for commodities increases, which can drive prices higher. Additionally, if investors seek to hedge against inflation, they may turn to commodities, further pushing up their prices.
Why is money called a medium of exchange?
money is called a medium of exchange because it acts as an intermediate in exchange of commodities
What are commodities of money?
some disadvantages of commodity money are its not portable, durable, or divisible, it usually works in small economies
What is barter system?
In a barter system commodities are exchanged with commodities without the use of money. But in such a system two parties are required who are ready to buy and sell each other’s commodities. It is a primitive system.
When economist says that money serves as a medium of exchange they mean that it is?
They mean that it serves as a way of exchange commodities.
How does the government pay for it Deficits?
Money saved from past surplus
How does the government often pay for the its deficits?
Money saved from past surplus
What is the perfect tense of the verb save?
Past perfect tense - I had saved. Present perfect tense - I have saved.
What is the past perfect tense of saved?
The past perfect tense is had saved.
What is the past participle of save?
The past participle of "save" is "saved".
What are examples of commodities used as money in the past?
Examples of commodities that have been used as media of exchange include gold, silver, copper, salt, peppercorns, tea, decorated belts, shells, alcohol, cigarettes, silk, candy, nails, cocoa beans, cowries and barley. These were used a s a form of money in the past. But it is not fully erased from society it is still used today in some economies
What is the past tense of the word save?
The past tense of the word "save" is "saved."
What is the past participle of the word save?
The past participle of the word "save" is "saved."
What could one find on the website Futures and Commodities?
Futures and Commodities is a website dedicated to following the prices of commodities like natural gas, oil, and gold among others. The site also takes a look at the past and potential future of these commodities.
Do you get taxed on money saved?
Not taxed again on the after income tax money that you have saved but you are taxed on the earnings from the after income tax saved money.
What is the past tense to save?
The past tense is saved.
What is the present perfect of the verb save?
have / has saved They have saved money all their lives. She has saved very little money.
