3 Money, foreing exchange and finance *

 Name: Karla Yuritzi Flores Linares

Nua: 778081

 Money, foreing exchange and finance

1. How are money and currency defined?

Money: money which  can not be touched, neither it can be smelled, the money can be seen in terms of the numbers.

Currency: is the promissory note or coin which is presented in the form of money.

2. What are the differences between currency and money? 

money: Is all of those things plus a store of value over a long time.

example: online mode, check savings bank account, etc.

currency: Medium of exchange, it is a unit of account, it is portable, divisible.

example: coins, hard currency notes, etc.

3. What are their most important characteristics?

Both can be interchangeable, you can use them to buy something you want.

4. What is a Fiat currency?

Is the money like dollar, euro, etc. That does not have a monetary backing and cannot be exchanged for gold.

5. What are its characteristics?

*measure of value

*payment method

*instrument of exchange

6. What is money and currency used for?

It is generally used as a type of exchange to adquire goods and services.

7. What does “store of value” refer to?

Any asset that reliably maintains its value without depreciating over time and can therefore be used to transfer purchasing power to the future.

8. What was the currency used in the past?

was gold and silver

9. What is the most beautiful way of money?

Gold, this has been a most precious element throughout time.

10. What is a “solving system”?

Is the purchasing power of the currency

11. What happens when governments expand the currency supplies?

*Money loses value

*inflation

*high cost of goods and services

12. What is barter?

Exchange of a good or service in exchange for receiving something in return.

13. What is Quantity of Easy? 

Refers to the creation of the currency.

14. What is the tendency of QEs around the world?

When governments increase the amount of money, causing devaluation, wars between countries for power, to name a few.

Write a final reflection on the topic, mentioning what were the most important aspects

you learned.

It is incredible how over time the way we can buy things has been changing, how the financial system has changed, that is, today we manage currency and money, which are controlled by governments, The government prints paper with a value that they establish themselves and the more they print, the prices of goods and services increase, we know it as inflation, this is a global phenomenon and that no matter how much time you spend working, each time you will be able to buy less. 
Simply put, the gold stopped working since for the government it implied a moderation in its expenses, and as long as the government has controlled these fluctuations of money, they will be able to decide how much our time and freedom is worth, which personally is the most valuable thing we have.