| Tuesday, December 16, 2008 |
| What Is Money? |
Money? What is it?
Before you start to make your own money, you must first understand what money really is and how it works? Money is a "medium of exchange" for goods and services. Most people don't specifically take the time to understand money and get to know what it really is. Most of their major concerns are how much money they have, and how to get more of it. Money questions only arises when their money is not functioning properly.
Prior to the invention of money, human trades directly with one another through barter system, that is, a system where i trade my goods or services for your good or services. Problem exists in this system when a person might not want what the other party offer in exchange. Hence, there is no deal. So, to overcome this problem, money is invented. Money acts as a medium which is universally recognised and accepted by everyone.
As such, exchange can take place when a person can trade his/her goods or services for money, knowing that with the money, he/she can exchange for whatever he/she wants later. Thus, money facilitates transactions.
Money cannot be just an idea, it has to be a physical entity for transactions to take place. Long ago, humans have used gold and silver as the physical entity for money as they are valuable metals. Today we have electonic money, notes and coins that circulate in our monetary system. It has since become the best form of exchange serving us mankind in our modern everyday lives after evoluting thus far.
See Also
Learn Forex Trading IntroductionLabels: What Is Money |
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posted by Fluffy @ 3:20 AM
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