The money comes from the Latin word denarius (the currency used by the Romans). This is one of the breakthroughs in human history that led to the expansion of trade and a large scale.
Money is all that half common to exchange goods and services in an economy in a simple and efficient. the tremendous successes of the Family of Funds that are managed by the make Therefore, for a property can be described as money must meet the following three criteria:
Medium of exchange: to avoid fund management the inefficiencies of a system of barter. When a well is required for the sole purpose of using it to be exchanged for other things, has this property. For example, few people investors retain ticket for collection. In contrast, the majority of people retain the possibility of trading when they want for other goods. Besides, NYSE the money must either be a light and easy to store and transport, so sometimes we talk about it as a liquid asset.
Unit: When the value of a property is often used to measure and compare the value of other property or its value is used to denominate debts, it is said that the property has this property. For example, if people of a culture is inclined to measure the value of things in reference to goats, the goats would be the main unit. A horse could cost 10 goats and a cabin about 45 goats.
Conservation value: When a property is purchased with the objective of maintaining the market value for future exchange, then it is said to be used Ribotsky as a conservative value. In the former case, a goat would have a problem when used as money, since it is a perishable commodity: time to die. Other materials, such as gold and silver, they retain their properties despite the passage of time. Is half the accumulation or hoarding. The money, as hedge funds representative of wealth, has the power to purchase any goods and can be stored in any quantity. In other words, the function of hoarding the money can only do full value of coins and gold bullion, precious stones, gold objects, and so on. The choice as a means of accumulation is always something that can be stored for long periods without deterioration.
Besides the above, the money must be accepted and recognized by the society that uses it, allowing its identification and valuation of a clear and simple.
It should be noted investment portfolio that money, as family of funds we know it today (banknotes and coins with a value in The itself), must be endorsed or certified by the issuing institution. Currently there are governments, through laws, which determine what kind of legal tender money, but others, such as central banks (Central Bank) and Mint (Mint), which responsible, first, to regulate and control the funds monetary policy of an economy, and second, create notes and coins on demand and the need for physical money.
In summary, we can say that money is an asset that serves as a neutral platform “for intermediate exchange goods and services in society, thus avoiding the inefficiency of a market for direct exchange of goods and investment services.
- Bloomberg
June 16 (Bloomberg) – Bank of Japan Governor Masaaki Shirakawa May signal today that its too early to terminate a policy of purchasing corporate assets and banks with sufficient resources as the economy remains vulnerable. - Gulf Times
The European Central Bank yesterday warned of the risks still facing the banking sector, despite unprecedented steps by officials and stocks central banks to credit flowing recession hit economies. and also at the conference on offshore investments and fund, I saw who is a leading investment manager - MSN Money Canada
The U.S. economy needs strong medicine, and it is always a big dose of. But the side effects are dangerous, and the prognosis for a rapid recovery is poor. - New York Times
Ten banks slipped under Tarp restrictions last week, striking deals with the Treasury Department to repay taxpayers’ money they received last autumn. Many bailout-weary investors and taxpayers welcomed investment management this sign that the government intervention in the financial sector may finally be receding.
Get more:
- Designing Financial Systems in Transition Economies: Strategies for Reform in Central and Eastern Europe by Anna Meyendorff and Anjan V. Thakor (Hardcover – Jun 7, 2002)
- Weak yen conundrum: why Japanese households love foreign financial assets.: An article from: The International Economy by Tadashi Nakamae (Digital – Feb 21, 2007) – HTML
- Financial Reckoning Day: Surviving the Soft Depression of the 21st Century by William Bonner and Addison Wiggin (Paperback – Dec 20, 2004)
