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Our teamworking presentation homework for English subject.
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MONEY AND ITS FUNCTIONS
Definition Function
Classification
Definition of Money
What is MONEY ???
Definition of Money
any object accepted as means of exchange within a society
Function of Money
a medium
Function of Money
a mediuma measure
Function of Money
a mediuma measurea standard
Function of Money
a mediuma measurea standarda store
“Money is the matter of functions four
A Medium, a Mesure, a Standard, a Store.”
- William S. Jevon (1919)
Medium of Exchange
People use money
to exchange goods
Medium of Exchange
Money makes transaction easier
Medium of Exchange
Money removes the need for double coincidence of
wants
Measure of Value
Money measures values of goods and service
in its unit of account.
Measure of Value “A unit of account is a
standard numerical unit of measurement of the market value of goods, services, and other transactions.”
Store of Value The value from
consuming goods can be stored in several different ways, one of the best is money.
Store of Value
If you don’t want to spend your money now, you can do it later.
Store of Value
HOWEVER Inflation weakens
the ability of storing value of
money.
Standard of Deferred Payment
Future payments for current purchasesBuying now, paying later
Standard of Deferred Payment
Inflation adjustment: interest rates
Classification of Money
Commodity money
Classification of Money
Commodity money
Token money
Commodity Money
Its value comes from what
made of it
Commodity Money
It is objects that have value in themselves as well as value in their use as money
Commodity Money
GoldSilverCopperShellsCattlesCandy
Token Money
Another name: representative money
Token Money
It doesn’t have real value in itself
Token Money
Its value comes from either the commodity it stands for or from a government regulation or law.
Token Money
Paper moneyCoinsBanknotesCredit cards
Team 7Phuong Nam NguyenThe Thoai Nong
Kim Hoa Tran