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Home –› Banking & Finance –› Making Money
 

What is Money? (Part 2)

 
Author: David Brown and Paula Brown
 

In this second article of What is money? You will learn;

It is a store of value
Money is not real

The third point is money must be a store of value.

The object must have a market value that can be stored for future use.

For example, a man who sells lap tops has in his possession one hundred lap tops which he can sell for future trade. This is beneficial for him because he has a store of market value, when he sells the lap tops he will add value to his business and himself.

Maybe you keep a cash box at home. The currency in the box holds market value and can be used in a future date. The currency is a store of value.

Is money real?

Heres the thing, money is not real. Why is this fact?

We have already discussed that money systems are only objects which are trusted and accepted.

If you lived in a culture where goats were the object of exchange would you view them as real money?

Money is the body of value. This value is decided within ourselves. For example, take two people.

One man loves the old silent movies the other man does not. They are both offered an original silent movie film. The film buff is so excited at the thought of owning this film he offers 1000 to buy it. The other man offers 10 because he does not hold any value to the item. See the difference; it comes down to internal value on an item.

If money was real they would have the same value.

Also read back to the first three questions, it mentions about the personal value on an object.

 
 
 

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