Global Finance # 10 -Money Currency - 2003.pptVIP

Global FinanceLesson # 10 Global Finance Money Accepted common medium of exchange used for goods and services in the marketplace ? Global Finance Money Money is not the same thing As Wealth ? Global Finance Money can be …. Anything which is commonly offered or received for the sale of goods or to pay for services. ? Global Finance Money can be …. It’s a medium of exchange that facilitates trade and is NOT a piece of paper. ? Global Finance ? Money - Banknotes Coins Global Finance Barter I can use Barter as a process by which businesses exchange services with each other ? Global Finance Example of barter Suppose that I have a Lui Xiang picture that I want to exchange for a new pair of Nike running shoes ? Global Finance Lui Xiang Picture? Global Finance Nike Running Shoes Global Finance = ? Global Finance Example cont. Without the use of money, I have to find a person, or combination of people who have an extra pair of Nike running shoes to give up or just happen to be looking for a picture of Lui Xiang. ? Global Finance Example cont. . . Since money is a recognized medium of exchange, I do not have to find someone who is looking for a picture of Lui Xiang. ? Global Finance Example cont. . . Since money is a recognized medium of exchange, I do not have to find someone who is looking for a picture of Lui Xiang. ? Global Finance = ? Global Finance Function of Money is …. Store of Value Medium of Exchange Measure of Value Standard of Deferred Payment ? Global Finance Characteristics of Money are …. Divisibility Portability Durability Acceptability ? Global Finance Divisibility ? Global Finance Portability = ? Global Finance Durability 1337 Chinese Coin ? Global Finance Acceptability ? Global Finance Rises in Currency caused by…. An increase in the demand of that country’s good overseas An increase in the demand for domestic investment by foreigners The belief that the value of the currency