Money, foreing exchange and finance

 

2. What are the differences between currency and money?

Currency is what gives money a value. Money only represents a part of the value of the currency but by itself is worthless, it also must be a store of value and maintain its purchasing power.

 

3. What are their most important characteristics?

Currency: is a medium of exchange, unit of account, is portable, durable, divisible, and fungible.

Money: all of the above plus a store of value over a long period of time.

 

4. What is a Fiat currency?

Is the one that is not backed up by gold or silver

 

5. What are its characteristics?

They are based on confidence

 

6. What is money and currency used for?

For government they are a tool to steal purchasing power.

 

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

It refers to the purchasing power

 

8. What was the currency used in the past?

Mostly gold, silver another metals

 

9. What is the most beautiful way of money?

Gold, because it is divisible, permanent, it is a store of value, a unit of account and it cannot be increased.

 

10. What is a “solving system”?

 

11. What happens when governments expand the currency supplies?

Inflation. Currency purchases less so it goes down making look like prices go up.

 

12. What is barter?

A system where goods and services are exchanged

 

13. What is Quantity of Easy?

A global phenomenon, a currency created out of nothing and given to the banks to pay themselves record bonuses to increase currency creation.

 

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

Every country is expanding its currency supplies doing bailouts repeating history and it never turns out well because it always creates some level of inflation.

 

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

you learned.

Well, I would like to say I learned a lot, but the truth is I’m not a really big fan of economy, so I just got the basic points mentioned like the importance of using gold to back up currencies to make them stronger and the consequences of currency supplies such as inflation all over the world affecting specially harder people in need. I also found very interesting the evolution of money and currencies since their beginning, that is what I liked the most.