Money
Money
There have been lots of things said about money: the good, the bad and everything else in between. And it really does not matter how much we deny its importance, but yes, money does make the world go round. Money has always been a visible status of wealth and opulence; but it has also been the source of a lot of economic and global movement. From the very first minted coins in pre-historic period to the virtual money we have now over the World Wide Web, money is still making our lives on the roll, for better or for worse.
As dictionary meanings go: money is considered any form of payment, either as a trade for acquired good or services, or as a form of exchange for debts incurred. In prehistoric times, valuable salt was used as a bargaining chip, and in some countries, pristinely preserved seashells were exchanged for food and drink. In short, money serves as any medium of exchange, as a veritable substance to measure one’s account, or any store of value. Some years back, many financial book authors explicitly require money or currency to be the standard deferred payment for any physical or verbal transactions. These days, the use of money is also being used to buy virtual space, services and products. With the advent of such companies like Paypal, virtual money transfer has become almost commonplace.
When we say, money we also denote the circulating currencies we use in our daily lives. Every small cent or single bill we use is considered as money. However, there is also the money that does not usually circulate among the masses; these are tied to banks and other financial establishments in the forms of certificates of deposits, demand deposits, and our savings accounts.
When it comes to economics, money is divided into many types. However, two of the more common tyopes we are using today are: commodity money representative money.
Commodity money is more primarily known as simple bartering. The word comes from the value derived out of the commodity from which the money is derived from. Examples of commodity money include gold, silver, copper and other precious metals. It can be in the form of alcohol, decorated belts, candy, cigarettes, large stones, peppercorns, salt, etc. Representative money is a good term for the virtual money we have over the web. Its main purpose is to represent the actual currency we use via digital certificates, or token coins.
Comments
You must be logged in to post a comment.