3-TASK 1 MONEY, FOREIGN EXCHANGE, FINANCE.

 

3-TASK 1 MONEY, FOREIGN EXCHANGE, FINANCE.

 

Name: Alondra Maricela Ramírez Aguilar.

Nua: 311517

1.     How are money and currency defined?

The currency of exchange isa means of transaction, an accounting unit, is portable, durable, divisible and fungible; money is all the above plus a repository of value for a long time.

2.     What are the differences between currency and money? 

Currency is somewhat durable, it is portable, divisible. Gold and silver store great value that is held in place in the bank vault.

 

3.     What are their most important characteristics?

Currency The value of the currency will always depend on the law of supply and demand in the market. Its value must be the same for all people, entities, companies and organizations and institutions in a country. It is also an economic exchange through checks, promissory notes or other commercial documents. -Money Must be standardized Accepted and recognizable Divisible to allow transactions It should not be easy to deteriorate because it would lose its value as a currency.

4.     What is a Fiat currency?

money legally accepted as a means of payment but worthless as a commodity.

5.     What are its characteristics?

It has no use value.

It is backed by the government

There is unlimited supply

 

6.     What is money and currency used for?

Money is used to measure the value of goods and services in an economy, it helps facilitate exchanges in an economy.

7.     What does “store of value” refer to?

It is an asset that can be stored without future impairment.

8.     What was the currency used in the past?

Gold and silver

9.     What is the most beautiful way of money?

Gold

10.  What is a “solving system”?

A system that allows the government to maintain control over the way money is produced.

11.  What happens when governments expand the currency supplies?

 Inflation, prices soar, and currency reduces value. 

12.  What is barter?

Exchange of goods with an equivalent value between them.

13.  What is Quantity of Easy? 

It is a way ofc rear the currency. They are monetary policy strategies used as the Federal Reserve.

 

14.  What is the tendency of QEs around the world?

The expansion of a supply of currencies resulting in inflation.

 

Write a final reflection on the topic, mentioning what were the most important aspects you learned. 

In this activity reflect on the world economy, since its inception. With the passage of time finances, money, etc. They are what are moving countries. It is very interesting the way they relate it in the video, it takes you into the subject and makes you want to know more, they are topics that normally or at least I do not usually dig further but we have to know more, educate ourselves as it says in the video, invest in our financial education.