Essays on Medium Of Exchange

All assets even the perishables can be used to transfer current resources into the future. The owner of perishable asset needs to trade it with a nonperishable asset to store the value of his asset. Otherwise, anything whose value cannot be stored in present form or different form cannot be classified as an asset. For example, milk is a perishable asset, but it can be transformed into other forms that take long to be stale. The adoption of money in place of barter trade enhanced the capability of storing the value of assets. The owner of perishable assets may ...

Summary of the Content

The book that is the subject of this paper is entitled Debt: The First 5,000 Years. This book was published in 2011 by book author and anthropologist David Graeber. As the name implies, much of the content was focused on debt. It, however, tackled the said topic in relation to other social institutions and practices such as marriage, friendship, barter, law, religion, slavery, economics, and government management. By putting the topic in line with the very factors that make up human life and society, he basically showed that he considers debt has played an important part in it. ...

Introduction

Money plays a vital role in the determination of income and employment . interest rate are a significant determinant of aggregate spending ad the Federal Reserve which controls the money growth and the interest rates is the first institution to be blamed when the economy of in trouble. Now the question arises what is money.

Money Definition

Money is a medium of exchange. Money is divided into commodity money and token money. To some economist there is difference between commodity money and token money. A commodity money is a medium of exchange which has a commodity value as distinct from a value ...

Introduction

Money can be defined as something that is accepted in the society as a medium of exchange and also acts as store of value as well as measure of value. Interest, on the other hand, is the amount paid by the borrower of money to the lender for receiving the benefit or privilege of holding the money for a period of time. In this study we attempt to trace the origin and evolution of money and this history is also closely related to the origin and history of interest on loans.

Origin and Evolution of Money

Before money came into being barter system existed ...

Introduction

Various symbols are currently linked to or used to represent an interconnected world. The use of the flag, for instance, represents a national identity of the country or a group of countries. These artistic symbols have been carefully designed to incorporate a number of signs and colors that convey a specific message to the group that it represents. In a fragmented world, these signs and symbols would be irrelevant and meaningless. The population would then require dealing with the basics of life in a more generalized and unified view. One of the issues that will arise here is the use of national currencies. It should ...

Introduction

Monetary theory focuses on the functions, uses and management of money. The approaches to money go back as far as Plato and Aristotle. Aristotle focused primarily on money as a medium of exchange but later stated that money needed to be something with intrinsic value. He suggested that money should be something metallic and rare. As a result, Aristotle may be classified as a “metallist.” Plato’s conceptions of money differed from Aristotle’s because he introduced a credit component in the monetary theory. Schumpeter, a monetary historian, classifies Plato as a “Cartalist.” Karl Marx had strong conceptions on theories of money. He considered his theory ...

Question 1

Grameen Bank is a microfinance institution that was founded by the father of the microfinance institutions, Muhammad Yunus, with the principle aim to offer small loans to the poor people. Although the loans from the microfinance as little, they are enough to start a viable business especially among women. After the introduction of this institution, the microfinance institutions have spread all in Africa, Asia, United States, Latin America and Eastern Europe. However, these institutions are commonly founded by organization such as World Bank and government. These microfinance institutions lend out money to groups of individuals but not to an individual. ...

Ever since humankind realized that proper practice of commerce would be dependent on some common medium of exchange, the use of objects as mitigation to the challenges of barter was to take root as early as 9000BC. This quest for a better way of doing commerce has led to evolution from the use of cowry shell in China, to the use of coins, paper money, and electronic funds transfer. While the development of money was gradual from 9000 BC, the 21st Century saw a steady rise in innovative evolution of money it would not be too unrealistic to speculate that in ...

Introduction

This paper explores the various forms of economic systems and their methods of allocating resources. Economic resource allocation seeks to achieve economic efficiency in all dimensions of resource allocation among the various economic actors within any economic set up. The major focus will mainly entail the command economy as well as the market system of economy. A market system of economy, normally known as capitalism or free economy is a system of resource allocation in which the factors of production are allowed to move freely, the economy is allowed to operate freely without intervention from the central governments. It is ...