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I think it used to come from the comparison of the time of labour needed to extract gold and the time needed to produce or attain other commodities. So if 1 hour of mining would extract 5 grams of gold and if 1 hour of cultivating apple trees would give 1kg of apples then 5 grams of gold could buy 1kg of apples.
The question is where does the value of money come from nowadays!
What else can I help you with?
What does it mean by money loses value isn't money money?
Money can lose value by inflation or gain value through deflation.
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 mean money as ameasure of value?
Money is recognized as a measure of value as the value and amount of money measures the value of a specific product or service. http://www.datadubai.com/
Is money a store of value?
No, because the value of money depreciates with inflation.
What is the duration of Value for Money?
The duration of Value for Money is 1.5 hours.
How do you add money to increase the amount of money in a money order?
You cannot. Money Orders are fixed value monetary instruments. You cannot increase the value of a money order. Once issued, its value does not change. If you wish to increase the value, you have to cancel the existing money order and request for a fresh money order with the new/increased value.
When an object has an inherent value and is used as money that is called?
When an object has inherent value and is used as money, it is known as commodity money. This type of money has value independent of its use as currency.
What gives us money its value?
Gold gives money it's value
When was Value for Money created?
Value for Money was created on 1955-08-09.
The relationship between the value of money and the price level?
There is an inverse relationship between value of money and the price level. So if the value of money is low, then the price level is high or if the value of money is high, then the price level is low.
What does time value of money refer to?
The time value of money is the increase in, or future/prjected value of, an amount of money, due to the implied interest earned on it over a period of time.
Which of the following statements accurately describes the relationship between commodity money and flat money?
Commodity money has value in itself while flat money has value only because it is given value
