商务英语unit4 MONEY.pptVIP

Unit 4 MONEY What is Money Money is anything that is generally accepted as payment for goods and services. The main uses of money are as a medium of exchange, a unit of account, and a store of value. Features with Money Any item which is going to serve as money must be: acceptable to people as payment; scarce and in controlled supply stable and able to keep its value divisible without any loss of value portable and not too heavy to carry. Origin of Money Barter ? no agreement on offering or how much one was worth in terms of another; Valuable metals; Government melt down valuable mental into coins; Paper notes: banknotes Intangible money The Functions of Money Medium of exchange – people are willing to change their goods and services for money; A store of value – people are willing to hold on to money because it generally keeps its value (although not with inflation); Unit of account – people can measure the value of things in terms of money; Medium of exchange Money is used as an intermediary for trade, in order to avoid the inefficiencies of a barter system, which are sometimes referred to as the double coincidence of wants problem. Such usage is termed a medium of exchange. Unit of account A unit of account is a standard numerical unit of measurement of the market value of goods, services, and other transactions. It is also known as a measure or standard of relative worth and deferred payment. Divisible into small units without destroying its value; precious metals can be coined from bars, or melted down into bars again. Store of value To act as a store of value, a commodity, a form of money, or financial capital must be able to be reliably saved, stored, and retrieved — and be predictably useful when it is so retrieved. Sight deposits – deposits at banks which can be withdrawn without notice. Time deposits – bank accounts which require a minimum period of notice. private deposits – this refers to deposits of the general public at banks and buildi