Money, foreing exchange, finance. Exercise 2

 

How are money and currency defined?

Currency is the method of transition, an accounting unit, portable, durable, divisible and fungible.

Money is all of the above of currency but has a repository value for a long time.

What are the differences between currency and money? 

Currency is in circulation, the material expression of money and money is represented by what we can buy with it.

What are their most important characteristics?

countable, portable, durable, divisible and fungible.

fungible means that each unit is equal to the next.

What is fiat currency?

The value given to the banknotes in circulation in each country dictated by a government.

What are its characteristics?

 Its value is determined by the government and the economy of the nation.

What is money and currency used for?

The currency itself is the object with which we are paying to obtain a product or a service and the money is the value that we put on the exchange we make.

What does the term "store of value" refer to?

that an amount of gold equal to the value of the currency in circulation was kept in the bank.

What was the currency used in the past?

gold and silver

What is the most beautiful form of money?

The calorie, which is a shell of a mollusk commonly found on the shores of the oceans.

What is a "resolution system"?

when governments decide how to improve the economic situation through the printing or not of currencies. 

What happens when governments expand the supply of currency?

the value of currency decreases and inflation increases.

What is barter?

The exchange of goods and services between people.

What is the quantity of easy? 

when governments print money just to circulate more currency.

What is the trend of QE in the world?

all governments seek to solve the economy of the nation in which they are and then in a globalized world the most current is the use of cryptocurrencies and reserves of gold and silver.

I learned the difference between currency and money since it is easy to confuse these two concepts and a little bit about the history that I did not know about how we went from barter to currencies that circulate around the world.