And because it provides a convenient way of exchanging goods, money enables society to gain the advantages of geographic and human specialization. Just as we measure distance in miles or kilometers, we gauge the value of goods in dollars.
With money as an acceptable unit of account, the price of each item need be stated only in terms of the monetary unit. We need not state the price of cows in terms of corn, crayons, and cranberries. Money aids rational decision making by enabling buyers and sellers to easily compare the prices of various goods, services, and resources.
People normally do not spend all their incomes on the day they receive them. To buy things later, they store some of their wealth as money. The money you place in a safe or a checking account will still be available to you a few weeks or months from now. When inflation is nonexistent or mild, holding money is a relatively riskfree way to store your wealth for later use. People can, of course, choose to hold some or all of their wealth in a wide variety of assets besides money.
These include real estate, stocks, bonds, precious metals such as gold, and even collectible items like fine art or comic books. But a key advantage that money has over all other assets is that it has the most liquidity , or spendability. The more liquid an asset is, the more quickly it can be converted into cash and used for either purchases of goods and services or purchases of other assets.
Levels of liquidity vary radically. By definition, cash is perfectly liquid. By contrast, a house is highly illiquid for two reasons. First, it may take several months before a willing buyer can be found and a sale negotiated so that its value can be converted into cash. Second, there is a loss of purchasing power when the house is sold because numerous fees have to be paid to real estate agents and other individuals to complete the sale.
As we are about to discuss, our economy uses several different types of money including cash, coins, checking account deposits, savings account deposits, and even more exotic things like deposits in money market mutual funds. Cash is perfectly liquid. Other forms of money are highly liquid, but less liquid than cash. Anything that is widely accepted as a medium of exchange can serve as money. In the United States, currency is not the only form of money.
As you will see, certain debts of government and financial institutions also are used as money. Money Definition M 1 The narrowest definition of the U. It consists of two components: The coins are issued by the U. The coins are minted by the U. Mint while the paper money is printed by the Bureau of Engraving and Printing. Mint and the Bureau of Engraving and Printing are part of the U.
Department of the Treasury. As with the currencies of other countries, the currency of the United States is token money. Governments make sure that face values exceed intrinsic values to discourage people from destroying coins and bills to resell the material that they are made out of.
Fifty-cent pieces would disappear from circulation very quickly! C heckable Deposits The safety and convenience of checks has made checkable deposits a large component of the M 1 money supply. But writing and mailing a check for a large sum is commonplace. The person cashing a check must endorse it sign it on the reverse side ; the writer of the check subsequently receives a record of the cashed check as a receipt attesting to the fulfillment of the obligation.
Similarly, because the writing of a check requires endorsement, the theft or loss of your checkbook is not nearly as calamitous as losing an identical amount of currency. Finally, it is more convenient to write a check than to transport and count out a large sum of currency. For all these reasons, checkable deposits checkbook money are a large component of the stock of money in the United States. About 49 percent of M 1 is in the form of checkable deposits, on which checks can be drawn.
It might seem strange that checking account balances are regarded as part of the money supply. But the reason is clear: Checks are nothing more than a way to transfer the ownership of deposits in banks and other financial institutions and are generally acceptable as a medium of exchange. Although checks are less generally accepted than currency for small purchases, for major purchases most sellers willingly accept checks as payment.
Moreover, people can convert checkable deposits into paper money and coins on demand; checks drawn on those deposits are thus the equivalent of currency.
Money, M 1 5 currency 1 checkable deposits I nstitutions That Offer Checkable Deposits In the United States, a variety of financial institutions allow customers to write checks in any amount on the funds they have deposited.
Now the topic arise is, where we got such required money. We need to get higher level study and do hard works to get good job or open our own business which requires more skill and confidence. Earlier the condition of poor people was very poor because of the pressure of the rich people.
They were not helping the poor people and use them only as a servant on the very low salary. However the condition of the poor people has become good as the rule and regulations of the government as been change in order to equalize the condition of both.
Now everyone has equal rights to study higher and get good job. Many people understand that money is the origin of the evil in the mind however I do not think so because thinking is the process of human mind and not the creation of money. I understand and believe that money is the most important key of happiness gifted by the God.
It is the human mind to take anything in different ways. Some people take it only to fulfil their physical needs and they never take it heartily however some people understand everything to the money and they can do anything for getting the money such murder, corruption, underworld work, smuggling, promoting bribe, etc. There is no any doubt that money is so essential for our healthy living.
Money is almost everything for us to live a life and maintain the good stats in the society. It is the money which fulfils the need of bringing necessary comforts and amenities of the life.
It is the money which helps us in developing good personality, improving confidence, makes us able to creditworthiness, improving capacity, increasing capabilities and enhancing our courage to a great level. Without money we feel helpless and alone in this world where no one is ready to help and assist. In the current materialistic world, money is very important and powerful thing without which one cannot live and survive.
Now-a-days, in order to earn more money in wrong ways, bad people are taking help of corruption, bribe, smuggling, murder rich people of the society, and other callous activities by degrading the moral and ethical values of the humanity. Lazy people follow wrong ways to earn money as they understand that these ways are simple and easy however it is not true. One can earn more money in less time and effort but not for long; surely he would be lost in the near future as he is following wrong and weak way.
The people who are earning money by following all the rules of humanity earn less money but for long time and they become the high status personality of the society. People doing corruption save their money as a black money in other countries to keep hidden from the common public and use that money for bad works or increasing their physical luxury.
However, common people of the society respects a lot to the people earning money using wrong techniques as they have fear of them and little bit greediness that they can get some money in return whenever required by giving them respect. They are generally called as the bhai or dada or don.
Money cannot buy or stay the time as well as cannot give true love and care however highly required by all of us to run the life on the right path. It cannot give time and love however gives happiness, confidence, satisfaction, feeling of well being mentally and physically, makes life easy by solving all the difficulties, and many more.
For example new machines have been invented and do now the work, which a person used to do. All because the company had enough money, and they want to produce as reasonably as possible. All in all I now see even better, that money is really important. I have also seen that money will always cause problems.
I guess the importance of money keeps on rising. To be honest, I have been wanting to become a person with a lot of money. Not only because I think money brings happiness, also because I want to be on the safe side. Also, I want my children to have a good chance for life. I want them to be able to reach something in life.
I happened to see a TV show where some people are trying a life without money. If so, this would be the first sentence, and is followed by: Not only the worth The importance of money or The Importance Of Money?
I can give you a few suggestions, but I am a bit short of time. Not only the worth of money has changed, also the importance.
I don't know what you mean. For example, take a coin worth 1 Euro. It was worth 1 euro last year, it will be 1 euro next year. Are you talking about inflation or deflation? The "worth of money" and what makes it change would be an interesting subject to discuss.. Is money more important to you than to your parents? Could your parents survive with no money? You need to set the context - what you are comparing with.
The importance of money has become so important for life , Money is one of the most important things in our lives now see even better, that money is really important. I guess the importance of money keeps on rising You repeat the same thing over, rather than developing a thesis with specific points.
You repeat the word "important, so it is a tautology. Money is important because it's important. That is not telling the reader anything. You could talk about the history of money - how it came into being, and how it grew in importance over a long history.
Even defining what money is would be interesting. Most money exists today as just digits in a computer system! The economist and historian Niall Ferguson documents the roots of money and finance. It is very interesting and there are four episodes. The first episode talks about what money really is. All the best, A- s. Check out our list of pronunciation videos.
Hi AlphaStars, Thank you! AlpheccaStars Not only the worth of money has changed, also the importance. Here I actually didn't want to say that the worth has changed Not the worth of Euro or something , but I wanted to say the worth in general.
Money plays a crucial role in the determination of income, output, employment, general price level and it is significant in the field of consumption, distribution, exchange, public finance etc. So it is worthwhile to know the meaning of money.
Money essays In the modern time, Money is energy for a life, and could purchase every thing, but sometime money can't buy a truelove. In fact, if we have no money, we won't spend for our life. Money is as well as blood in our body.
importance of money, importance of money essay, money essay, importance of money in life, speech on money Related Post Importance of Body Language Body language is . No one can live without money. We need to buy food and many basic necessities of life which are impossible to be bought without money. A rich man is seen in the society with respect and people around carry an honorable position for that man whereas a poor person is seen by people with the eyes of hatred and they do not poses a good impression.
Money Essay 4 ( words) Money is very much required thing in the life however; it cannot buy things like time, love and true care. It can only fulfil the outer needs of the person and not the inner needs like true love. Now-a-days, everything has become so costly but necessary to buy for living a simple life. Money is an instrument that we all depend upon to conduct every facet of our lives. The allure of money is magnified by our need for goods and services that are packaged to wet our appetite to spend more.