Value of Money Term Paper

Total Length: 893 words ( 3 double-spaced pages)

Total Sources: 0

Page 1 of 3

Money Its Value?

Using objects such as shells, coins, and other things of value to a community or individual has been practiced for thousand of years. If a close enough look could be taken, spending "money" probably started with Adam and Eve. When this exchange of tokens of some sort takes place, the tokens acquire a worth and enable the spender to obtain goods or services.

Money is defined as, "any definite or indefinite object which has value to both parties involved in the transaction." (Webster's New World Dictionary, 2nd College Edition).

Many different goods have been used as money throughout history. Over the centuries, only two commodities, gold and silver, have emerged as money in the free competition of the market, and have displaced the other commodities. In a free market, the medium of exchange is developed by people and their economic interactions. This is what establishes what money is. It is not established by a government calling bits of paper "money." A most important truth is thus established, MONEY IS A COMMODITY! "Learning this simple lesson is one of the world's most important tasks. So often have people talked about money as something much more or less than this. Money is not an abstract unit of account, divorceable from a concrete good; it is not a useless token only good for exchanging; it is not a 'claim on society"; it is not a guarantee of a fixed price level.
It is simply a commodity. It differs from other commodities in being demanded mainly as a medium of exchange." (Morgan, 2002).

The shape of the money unit makes no difference. For example, if copper is used for money, then all copper is money, whether it is a pipe, chunk, bar, coin, or picture frame. This is not to say that some shapes are not more convenient than others. The free market will determine if a coin is to carry a premium over another form of the same metal.

Money is used as a medium of exchange. Whatever is being used for currency in the society being studied has a worth which was placed upon it by the society's members. This exchanging money for goods or services is different from bartering. Bartering involves equal amounts of value of work or goods on both sides of the transaction.

In most cases, the substance used for money had value because of its scarcity, difficulty to obtain, or uniqueness. Gold is mentioned first in the Bible. Abraham "counted out 400 shekels of silver to pay for his wife's burial place.

Through the ages, three metals have a history of monetary usage - gold, silver, and copper; none….....

Show More ⇣


     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


Related Essays

Should We Get a Basic Income

value of money already in supply; 2) second, it gives the false impression that the money given to the public for free has value. Since no exchange of energy or labor or an alternate form of value was made but rather the basic income was simply generated out of thin air and supplied to the public, it has no real value. Of course, the proponents or supports of the concept of basic income know that—which is why they point to two methods of supplying basic income that does not follow… Continue Reading...

The Problems of Funding Basic Income Programs

interest. In other words, money is created, the supply of money is increased, and the value of money is decreased every time more of it is printed. The main purpose of exploring the role of fiat money in the contemporary monetary system is to show why printing or adding to the supply of money devalues the currency and only leads to higher inflation, thus essentially defeating the purpose of basic income in the first place ((Van Lerven, 2016). Aside from the generating the money for basic income out of thin air, which is not feasible as it only increases the prices of everything else, the… Continue Reading...

Capital Investments in Emerging Markets

longer payback periods. However, with respect to the discount payback period, the time value of money, also referred to as the discounted value of cash flow is taken into account for calculating the payback period (Capital Investment, 2016). Therefore, this is the period necessitated to recover the initial cash investment for a project, which is equivalent to the discounted value of the anticipated cash inflows. This particular methodology takes into consideration the time value of money and the discounting of future cash flows. Bearing in mind that the company has various projects in different business aspects, it is rational and beneficial to employ… Continue Reading...

Chief Executive Officer CEO of Durango Manufacturing Company

and can facilitate the adjustment for risk, takes into account all cash flows, alters for time value of money, is in line with the wealth maximization goal and makes realistic suppositions regarding the reinvestment of intermediate cash inflow (Bhandari, 2009). 4. In order for the company to improve its operational efficiency, recommend which production departments should use process, job order, and activity-based costing—all three (3) of which must be implemented within Durango. Defend your choice for each department. A great deal of corporations employs a process cost system when partaking in the manufacturing of large volume of products that are similar. Imperatively, the production undertaking is… Continue Reading...

Holistic Victim Restitution Plan

into Victorian working-claw life are as a result of a request for efficiency and 'value of money' from the 'new' police forces. In this context, an history of resilience was seen as an advantage (Walklate, 2013). There are three main institutions that make up the criminal justice system that moderate a case from the start, via trial, to sentence. The law enforcement officials commence a case, they collect evidence to recognize and utilize against the assumed culprit through inspection of the crime. The court carries on with the case to assess in case the presumed culprit is guilty without reasonable doubt by assessing the… Continue Reading...

sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Value Of Money" (2003, January 02) Retrieved July 7, 2025, from
https://www.aceyourpaper.com/essays/value-money-139307

Latest MLA Format (8th edition)

Copy Reference
"Value Of Money" 02 January 2003. Web.7 July. 2025. <
https://www.aceyourpaper.com/essays/value-money-139307>

Latest Chicago Format (16th edition)

Copy Reference
"Value Of Money", 02 January 2003, Accessed.7 July. 2025,
https://www.aceyourpaper.com/essays/value-money-139307