What's The Concept Of Commodity Money?
I am an executive blurter.
Answer:
Money as a medium of exchange first came into human history in the form of commodities. A great mixed bag of items have served as money at one time or another: cattle, olive oil, beer or wine, copper, iron, gold, silver, rings, diamonds, and cigarettes.
Each of the above have advantages and disadvantages. Cattle are not divisible into small change. Beer does not improve with keeping, although wine may. Olive grease provides a nice liquid currency that is as minutely divisible as one wish, but it is a bit messy to button. And so forth.
By the nineteenth century, commodity money was almost exclusively limited to metals like silver and gold ingots. These forms of money had intrinsic value, meaning that they have use value in themselves. Because money had intrinsic significance, there was no need for the rule to guarantee its value, and the market through supply and demand for gold ingots or silver regulated the quantity of money. But metallic money has shortcomings because scarce resources are required to digit it out of the ground, moreover it might become abundant simply because of unpremeditated discoveries of ore deposits.
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Answer:
Money as a medium of exchange first came into human history in the form of commodities. A great mixed bag of items have served as money at one time or another: cattle, olive oil, beer or wine, copper, iron, gold, silver, rings, diamonds, and cigarettes.
Each of the above have advantages and disadvantages. Cattle are not divisible into small change. Beer does not improve with keeping, although wine may. Olive grease provides a nice liquid currency that is as minutely divisible as one wish, but it is a bit messy to button. And so forth.
By the nineteenth century, commodity money was almost exclusively limited to metals like silver and gold ingots. These forms of money had intrinsic value, meaning that they have use value in themselves. Because money had intrinsic significance, there was no need for the rule to guarantee its value, and the market through supply and demand for gold ingots or silver regulated the quantity of money. But metallic money has shortcomings because scarce resources are required to digit it out of the ground, moreover it might become abundant simply because of unpremeditated discoveries of ore deposits.
Resolved Questions:
What is the definition and what are the functions of money?
According to the earlier definitions, "money is a commodity which is generally agreeable as a medium of exchange and at the same time it acts as a estimate and a store of value ". This is why professor Sigwick says "money is what, what...
How Much Money Do Counselors Make A Day?
This depends on qualifications, experience, your job history in that Field. Agree that the specialization of the counselor plays a role. If you focus on enterprise or business related counseling you will form more than non-profit or hospital/social service oriented counseling. And of course where you are...
How do you start a successful business?
There is no one way with the use of which you can start a successful business and it depends upon your innovative powers to bring back the job done. So we can suggest you to find your own way to start your business. But since you have asked...