Assignment 3 - MONEY, FOREIGN EXCHANGE, FINANCE.

Name: Verónica Navarro Cárdenas 

Nua: 313450

Watch the video, answer the following questions.

1. How are money and currency defined?

Money: it is a tool to exchange our time, a container where we deposit our economic energy.

Currency: a deceptive money imposter who steals time and freedom.

2. What are the differences between currency and money? 

The coin: It is a durable, measurable, portable means of transaction.

Money: They are all the things that surround us, that have a value for a long time. It is durable, interchangeable, measurable, portable

3. What are its most important characteristics?

Definitely both the way they can be interchanged and portability are two important features.

4. What is a Fiat currency?

This is a type of currency that exists at the disposal of the government, without it it could not be made official.

5. What are its characteristics?

- Has no intrinsic value

- It is printed without any endorsement.

- Only if the government adds value, does it get it

- not durable

- Has 100% failure

- It does not have permanence for long periods in the market

6. What is money and currency used for?

Its use is a value that is added to the work of society or to the material things that we can obtain or sell.

7. What does “store of value” refer to?

The store of value is the power that a currency acquires.

8. What was the currency used in the past?

Silver and gold

9. What is the most beautiful way of money?

The gold is formed when a star explodes and stays there forever, that's why it's the best money. It has various uses.

10. What is a “solving system”?

It is a very useful system to have control over governments, this could be applied if metals were used instead of coins.

11. What happens when governments expand the currency supplies?

Direct inflation like the one we live in today, that's why prices are so high

12. What is barter?

The exchange of goods that in ancient times were considered valuable to obtain some other in exchange, those goods were their transaction currencies.

13. What is Quantity of Easy? 

The creation of the coin

14. What is the tendency of QEs around the world?

This refers to the large amount that governments have produced worldwide, which has had a huge increase, which only makes its value go down.

Write a final reflection on the topic, mentioning what were the most important aspects you learned. 

Both money and currency are two important lines in the world economy, they are the protagonists of making possible the acquisitions, transactions and exchange of goods, movable and immovable, as well as the working hours in any place they work.

It seems incredible to me how we have modified the economy of our world, how printing is made possible and the official way in which both coins and money are placed in the economic market, quite interesting.