What is money and why do we need it? Historic evolvement of money: economic perspective.

What is money and why do we need it? Historic evolvement of money: economic perspective. Essay example
High school
Essay
History
Pages 5 (1255 words)
Download 0
Economists such as Crowther and R.P. Kent define money as “a commodity which is generally acceptable as a medium of exchange and at the same time acts as a measure and a store of value" (Economics Concepts, 2012)…

Introduction

Economists such as Crowther and R.P. Kent define money as “a commodity which is generally acceptable as a medium of exchange and at the same time acts as a measure and a store of value" (Economics Concepts, 2012).In the ancient societies such a generally acceptable commodity became important with advancement of indirect transactions. Example: in a society where money is not involved a farmer produced wheat. He also needs salt. Salt producer wishes to acquire fish but not wheat. Hence the farmer would have firstly exchanged his wheat for fish and then fish for salt. Instead money could enable farmer to purchase salt directly from the producer without involving fisherman. Division of labor thus fueled emerging of money. Due to the fact that money could facilitate exchanging of any good or services people started to store money for future consumption. Thus the role of money as a store of value also became prominent. In early societies silver and/or gold coins were used as money. In time trading of goods and services became a large scale practice in the societies. And the amount of silver and gold became insufficient to exchange the amount of goods and services circulating in the economy. Currently the governments produce notes and coins and supply them to the economy for facilitating trade. However government gold reserves still serve as an indication of country’s wealth.It is also argued that evolving of money has not yet reached the highest possible stage because the current day money is not generally accepted as a medium of exchanging across country borders. ...
Download paper
Not exactly what you need?

Related papers

What is the self and how can we know it, or can we know it at all?
Ascribing from the above definition it can be argued that the self refers to what someone perceives or thinks about himself. The self concept can be known when one becomes aware of oneself. An individual can know this concept when he belief on himself or herself and achieves a higher level of personal attributes awareness. It can be generally the self can be viewed o three strands perspective.…
people who contribute to social security should have the right to choose how their money is invested.
Neither is social security a financially secure program as the office itself has a problem collating funds in order to fund itself. The program is basically bankrupt. Knowing that social security is in dire straights due to the U.S. economy, one cannot help but wonder, maybe the system will be better off if it is privatized and the members are given the opportunity to invest the money they…
What does it mean to be human in the year 2013? Are We Becoming Cyborgs?
Even perhaps, that I may sound like I do not understand technology. On the contrary, I have a complete grasp of technology enough for me to conclude that it is no longer serving its purpose and therefore, its use should be limited. Technology’s main function is supposed to make our lives easier. Information technology is supposed to enrich our lives considering the enormous amount of information…
May one lend money to co-workers who need it to commit sins?
In the case of his friend for instance, who wanted the money to ‘commit sin’ with a call girl, he denied him on moral grounds. He argued that by doing that, he would be hurting the wife of this co-worker. However, his morality position can be questioned where he provides his boss with money to purchase a gift. This present was supposed to be given to a woman that the boss was having an affair…
Why does Mackie think we need an "error theory"? Do you think he is right to believe that we need it?
The error theory suggests that morals are not absolute, that what is morally right or wrong vary from one society to another. It is a theory that states that morals are judged, not by the universal moral norms, but according to the society within which a circumstance calls for moral clarification (Dorsey 2006, p.495). When one considers the definition above, it can be stated that the morals are no…
Evaluation of the WikiLeaks video : We steal secrets. The story of a WikiLeaks from the critical thinking perspective.
Wikileaks is an immensely complex organization and in the film the author tries to shed light to its activities the background of its founder Julian Assage and the controversies surrounding it. In this film, the audience may decide for themselves if its founders and members qualify to be considered criminals especially by the US government or heroes in the fight for freedom of expression. Gibney…
Free Will. What is Free Will and do we have it?
If one chooses to rob the bank, then he or she should be ready to take the responsibility for the action. These actions are in one way or the other is determined by free will. This paper will discuss free will, determinism and compatibilism. It will also depict whether or not we have free will. Free will is also a philosophical term used to choose an action to various alternatives. When one act in…