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What are the Classification of money?
Full-bodied>Full-bodied is money whose value as a commodity for non-monetary purposes is a great as its value as money.>The principal full bodied money in modern monetary system have been coins of the standard metal when a country is on a metallic standard: A gold standard , a silver standard ,or a bimetallic standard using gold and silver.Representative Full-bodied Money>Which is usually made of paper, is in effect a circulating warehouse receipt for full-bodied coins or their equivalent in bullion.>The representative full-bodied money itself has no significant value as a commodity, but it "represents in circulation an amount of metal with a commodity value equal to the value of the money.Credit Money>By credit money, or debt money, we mean any money, except representative full-bodied money, that circulates at a value greater than the commodity value of the material from which it is made. In some cases, the market value of the money materials is insignificant, as in the case of most paper money.>Credit or debt money can also result as the issuing authority buys all the money material offered to it, but at a price significantly below the monetary or face value of the money into which it is transformed.
What is the full purpose of money?
The full purpose of money is to serve as a medium of exchange, facilitating transactions between buyers and sellers. It acts as a unit of account, providing a standard measure for valuing goods and services, and serves as a store of value, allowing individuals to save and defer consumption. Additionally, money helps to simplify trade and economic interactions, contributing to overall economic efficiency and stability.
What the difference between fiat money and gold standard?
Fiat money is currency that has value because a government maintains it and people have faith in its worth, rather than being backed by a physical commodity. In contrast, the gold standard is a monetary system where a country's currency or paper money has a value directly linked to gold, meaning it can be exchanged for a specific amount of gold. This ties the money supply to gold reserves, limiting how much money can be printed. Ultimately, fiat money relies on trust in the issuing authority, while the gold standard is based on tangible assets.
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.
In financial matters what best describes a silver standard?
A silver standard is a monetary system where the value of currency is directly linked to a specific amount of silver. In this system, coins or paper money can be exchanged for silver at a fixed rate, thereby establishing a stable value based on the precious metal. This standard contrasts with the gold standard, where currency is backed by gold. The silver standard was historically used by various countries but has largely been replaced by fiat currency systems.
This function of money allows the monetary unit of a country to serve as a unit in which the value of all goods and services can be measured.?
standard of valueThe function of money as a measure of value.
What is money and what functions does it serve in the economy?
Money is a medium of exchange that is widely accepted in transactions. It serves as a unit of account, a store of value, and a standard of deferred payment in the economy.
What functon of money allows the monetary unit of a country to serve as a unit in which the value of all goods and services can be measured?
Money as a measure of value is the function of money.
How does money serve as a store of value?
Printed money or electronic transfers and deposits obviously have no intrinsic value. However, money serves as a store of value because societies have agreed that it can be used to trade for goods and services.
What are the Classification of money?
Full-bodied>Full-bodied is money whose value as a commodity for non-monetary purposes is a great as its value as money.>The principal full bodied money in modern monetary system have been coins of the standard metal when a country is on a metallic standard: A gold standard , a silver standard ,or a bimetallic standard using gold and silver.Representative Full-bodied Money>Which is usually made of paper, is in effect a circulating warehouse receipt for full-bodied coins or their equivalent in bullion.>The representative full-bodied money itself has no significant value as a commodity, but it "represents in circulation an amount of metal with a commodity value equal to the value of the money.Credit Money>By credit money, or debt money, we mean any money, except representative full-bodied money, that circulates at a value greater than the commodity value of the material from which it is made. In some cases, the market value of the money materials is insignificant, as in the case of most paper money.>Credit or debt money can also result as the issuing authority buys all the money material offered to it, but at a price significantly below the monetary or face value of the money into which it is transformed.
What is the purpose of the monetary standard?
without monotary standard there would be no system of which to conrol money and keep it in order. the purpose of monotary standard is to keep money supply durable, portable, divisable, and stable in value.
Money serves as a standard to place value on goods and services what is created?
unit of account
What does standard of deferred payment mean?
In economics, one of the four functions of money is to serve as a "standard of deferred payment". It means that a contract or agreement may specify (or imply) that the repayment of a debt be made using a particular monetary unit. It differs from other functions of money in that it is not functioning as an immediate medium of exchange or store of value but, rather, as a medium by which future payments will be made.
What is the importance of a monetary standard?
A monetary standard is what gives money value. Paper or coin currency has no inherent value; its value comes from the standard backing it up. For example, the monetary system in the United States runs on a gold standard. This means that all the money and commerce in the United States can be backed up with the gold the United States possesses. The monetary standard is important in that it allows the economy to function and for goods and servies to be bought and sold.
What is unit of account?
A standard monetary unit of measurement of the value of goods and services. Example: money
Who said A standard of value is any commodity by means of which people measure and express the value of other commodities?
This is from the book "Money And Banking" by William A. Scott
What are the aims and objectives of McDonald's?
· to serve good food in a friendly and fun environment · to be a socially responsible company · to provide good returns to its shareholders · to provide its customers with food of a high standard, quick service and value for money
