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What is money

Tuesday, June 8, 2010

        What is money? If you are thinking that you know about money, chances are you have no idea, although by definition money is the means of payment in the form of currency and check used to buy things. You will think the meaning of money stops here, right? Well it doesn’t, leaning about money is well suggested to every human being on earth. The value of money and the risk behind it when mishandled is the importance of the knowledge everyone must possess about  money.
        Some of us were born into lots of money, most of us have to labor hard to earn it, and at the same time some of us are born into debt system. When everyone trust any form of payment as money in a form of payment for bills, goods and debt, it is then that trades are executed. Before currency existed, it used to be goods exchange to trade, it was called a bargain; this means when someone has a apple and the other person has an orange they would swap orange for apple that was how transactions were usually executed in the past, they will trade but not trade with money, they use the system goods for goods arrangement. Later when money came into existence money became middle man between a seller and a buyer.
                                                                    Money Control
               The government deals with the control of the money trough the national central bank. The government use the central bank to monitor the market so they know exactly what amount of money to print out for the nation, when money is not regulated it causes hyperinflation, in which prices increases progressively. Hyperinflation affects the market in sense that people tend to store good by spending their money quickly to avoid price hike and this usually cause the money to lose its value, and that is why some currency are has more value than the other. Example will be china currency yen has more value than pounds and so on.







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