Name: Ekateryna Calderón Hernández
Nua: 391880
Watch the video, answer the following questions.
1. How are money and currency defined?
Money is a trading tool that stores the economic energy that is your time and freedom whereas currencies leak them away.
2. What are the differences between currency and money?
3. What are their most important characteristics?
Currency is a medium of exchange, a unit of account. It's portable, durable, divisible and fungible whereas money is all of that PLUS a store of value over a long period of time. Money is all that PLUS it must be a store of value and maintain its purchasing power over long periods of time.
4. What is a Fiat currency?
A currency that exists as government-issued so that makes it official. There's no intrinsic value to that money except the backing of the gov.
5. What are its characteristics?
- 100% failure rate
- None survive
- It's not stable
- It's value relies on the government trust in it
6. What is money and currency used for?
Money is an intermediary exchange used to buy goods or services. While currency is the printed paper that represents the "money"
7. What does “store of value” refer to?
An asset that can be stored and retrieved at a later date without losing its value
8. What was the currency used in the past?
Gold and silver
9. What is the most beautiful way of money?
Gold. Because it's result of stardust that fell from the supernova star collision so it's not possible to re-produce (we cannot print it), it can be reshaped in innumerable ways for different uses and it's valued the same everywhere, it's permanent, it's a store of value.
10. What is a “solving system”?
A system where a government maintains control of its money because they use metals as currency.
11. What happens when governments expand the currency supplies?
Inflation- the decline of purchasing power of a given currency over time.
12. What is barter?
The exchange of equally valued goods.
13. What is Quantity of Easy?
The currency creation.
14. What is the tendency of QEs around the world?
It can be positive in first world economies but in developed contries it almost always causes a crisis
Write a final reflection on the topic, mentioning what were the most important aspects
you learned.
Honestly I never understood why gold was so valuable in the whole world, now I know that because it originated from stardust and that it cannot be replicated so gold can account for an economy, and that's why all countries value it. Also now I undestand why inflation happens.
Before reading all the information I did not know the exact differences between money and currency. I like how tyou write the information and you synthesize the most important
ReplyDeleteI agree with what you answered in questionn number 4. Currency has no real value. Once we think about it, it makes us realize that simply believing it has value,just because the government tells us so, is absolutely shocking.
ReplyDelete