Copyright © 2013 - 2020 IELTS Mentor. Haven`t found the right essay? Thus, in equation form, Money, M 2 5 M 1 1 savings deposits, including MMDAs 1 small-denominated (less than $100,000) time deposits 1 MMMFs held by individuals In summary, M 2 includes the immediate medium-ofexchange items (currency and checkable deposits) that constitute M 1 plus certain near-monies that can be easily converted into currency and checkable deposits. In the United States, a combination of legislation, government policy, and social practice inhibits imprudent expansion of the money supply that might jeopardize money”’s purchasing power. Give reasons for your answer and include any relevant examples from your experience. This does not affect the worksheet activity in any way. However, despite displaying clear terms on our sites, sometimes users scan work that is not their own and this can result in content being uploaded that should not have been. It can be tempting to order take out at the end of a long day, or … Please note that the above text is only a preview of this essay. And coins, we know, have less intrinsic value than their face value. As far as the right use of money is concerned, the golden rule would be to spend it wisely focusing on righteousness and virtues. People can, of course, choose to hold some or all of their wealth in a wide variety of assets besides money. Money is the medium used by people to buy required goods and services. First, it may take several months before a willing buyer can be found and a sale negotiated so that its value can be converted into cash. In short, people cannot convert paper money into a fixed amount of gold or any other precious commodity. The use of electronic money is quite effective because it is fast and convenient method of payment. When people realized that they could write essays for money they started volunteering to write college papers. Also excluded from the money supply are any checkable deposits of the government (specifically, the U.S. Treasury) or the Federal Reserve that are held by commercial banks or thrift institutions. for students : all the ingredients of a good essay, Home » Economics essays » The Functions of Money. I had to shorten the essay to fit; this is the basic idea. Live life to the fullest – The real joys of life come with money. A paper dollar or four quarters in the billfold of, say, Emma Buck obviously constitutes just $1 of the money supply. ...(download the rest of the essay above). You would not think of stuffing $4896 in bills in an envelope and dropping it in a mailboxto pay a debt. It is not illegal for them to specify payment in noncash forms such as checks, cashier”’s checks, money orders, or credit cards.) If we do not have money, we will can't get a treatment and we will get die or else. Cash is perfectly liquid. The more liquid an asset is, the more quickly it can be converted into cash and used for either purchases of goods and services or purchases of other assets. The infamous post”’World War I hyperinflation in Germany is an example. There is an old saying that ”’money is what money does .”’ In a general sense, anything that performs the functions of money is money. Essays on Money. Some people like to spend their money as soon as they earn it, while others think it is better to save their money for some time in the future. Writing essays for money gives you the freedom of working from home. Download the full version above. Nor will government redeem the paper money you hold for anything tangible, such as gold. In complete contrast, a form of money with virtually no tangible properties whatsoever - electronic money - seems set to gain rapidly in popularity. These instances of runaway inflation, or hyperinflation , happened when the government issued so many pieces of paper currency that the purchasing power of each of those units of money was almost totally undermined. It also requires appropriate fiscal policy supportive of the efforts of the nation”’s monetary authorities to hold down inflation. 3 Runaway inflation may significantly depreciate the value of money between the time it is received and the time it is spent. It goes without saying that all services and products are quantified in terms of green bucks. An individual devoid of mental peace would be a backlog contender towards achieving the quality of life. Credit unions accept deposits from and lend to ”’members,”’ who usually are a group of people who work for the same company. But if we counted currency held by banks as part of the money supply, the same $1 would count for $2 of money supply when Emma deposited the currency into her checkable deposit in her bank. It is in this sermon that Wesley develops the now famous three-point formula for the right perspective on wealth. After the barter trade went out of fashion, money has taken its place and made transactions simple for the people. By Abbi Media. Another indispensable factor in this context would be the success in life that one earned, both success and good life being directly proportional to each other. In the United States, currency is not the only form of money. Money is the most important source to live a healthy and prosperous life; however, it cannot be compared with the significance of love and care. And the cost is significant – missed time with family, spouses, and downtime for yourself. EssaySauce.com has thousands of great essay examples for students to use as inspiration when writing their own essays. We need not state the price of cows in terms of corn, crayons, and cranberries. A cceptability Currency and checkable deposits are money because people accept them as money. We should use money not be used by our desires to always have more. The result? L egal Tender Our confidence in the acceptability of paper money is strengthened because government has designated currency as legal tender . Similarly, checkable deposits can be redeemed not for gold but only for paper money, which, as we have just seen, the government will not redeem for anything tangible. deposits perform the basic function of money: They are acceptable as a medium of exchange. That is all you can get. How To Write Money Amounts In An Essay Or how to write numbers in a paper . Higherrices lower the value of the dollar because more dollars are needed to buy a particular amount of goods, services, or resources. All of our essays are donated in exchange for a free plagiarism scan on one of our partner sites. EssaySauce.com is a completely free resource for students. To summarize: Money, M 1 5 currency 1 checkable deposits I nstitutions That Offer Checkable Deposits In the United States, a variety of financial institutions allow customers to write checks in any amount on the funds they have deposited. The coins are minted by the U.S. Mint while the paper money is printed by the Bureau of Engraving and Printing. About 49 percent of M 1 is in the form of checkable deposits, on which checks can be drawn. Jewish Teachings About The Right Use Of Money The major religions of the world all teach that God is good and he therefore wants every human being to lead a good, happy life. Secondly, money being spent on charity would classify the right use of it. Therefore, money is one of the crucial elements in human life. Such pricelevel stability (2”’3 percent annual inflation) mainly necessitates intelligent management or regulation of the nation”’s money supply and interest rates (monetary policy) . He then found out the future value of each tool and what he expected the future... Wordcount: 316 As we describe the various forms of money in detail, take the time to compare their relative levels of liquidity”’both with each other and as compared to other assets like stocks, bonds, and real estate. Here are those functions: ”’ Medium of exchange First and foremost, money is a medium of exchange that is usable for buying and selling goods and services. Money Definition M 1 The narrowest definition of the U.S. money supply is called M 1 . Specifically, each bill contains the statement ”’This note is legal tender for all debts, public and private.”’ That means paper money is a valid and legal means of payment of any debt that was contracted in dollars. Moreover, people can convert checkable deposits into paper money and coins on demand; checks drawn on those deposits are thus the equivalent of currency. To many people, the fact that the government does not back the currency with anything tangible seems implausible and insecure. Savings and loan associations (S&Ls), mutual savings banks, and credit unions supplement the commercial banks and are known collectively as savings or thrift institutions , or simply ”’thrifts.”’ Savings and loan associations and mutual savings banks accept the deposits of households and businesses and then use the funds to finance housing mortgages and to provide other loans. Campaign staff, office space, advertisements, travel, etc., cost lots of money. Money presents many benefits to humans than we can imagine. Again, consistency is the key. Money and Prices The purchasing power of money is the amount of goods and services a unit of money will buy. The Components of the Money Supply Money is a ”’stock”’ of some item or group of items (unlike income, for example, which is a ”’flow”’). To protect the anonymity of contributors, we've removed their names and personal information from the essays. Home — Essay Samples — Life — Personal finance — Money. For instance, if 50-cent pieces each contained 75 cents”’ worth of metal, then it would be profitable to melt them down and sell the metal. When we want to measure and record economic value, we use money as the unit of account.The unit of account function of money refers to the fact that the prices of different goods are expressed in a common monetary unit. And because it provides a convenient way of exchanging goods, money enables society to gain the advantages of geographic and human specialization. Need of Saving Money Money by far is the most necessary thing required after basic necessities i.e. But the reason is clear: Checks are nothing more than a way to transfer the ownership of deposits in banks and other financial institutions and are generally acceptable as a medium of exchange. All rights reserved. Similarly, people will use money as a store of value only as long as there is no sizable deterioration in the value of that money because of inflation. Along with the other determiners and rightly spend money, life is beautiful! 2 Government and government agencies supply coins and paper money. When inflation is nonexistent or mild, holding money is a relatively riskfree way to store your wealth for later use. The money supply in the United States essentially is ”’backed”’ (guaranteed) by government”’s ability to keep the value of money relatively stable. T wo Qualifications We must qualify our discussion in two important ways. Here are those functions: ”’ Medium of exchange First and foremost, money is a medium of exchange that is usable for buying and selling goods and services. With a reasonably constant demand for money, the supply of money provided by the monetary authorities will determine the domestic value or ”’purchasing power”’ of the monetary unit (dollar, yen, peso, or whatever). In equation form, the relationship looks like this: $ V 5 1y P To find the value of the dollar $ V , divide 1 by the price level P expressed as an index number (in hundredths). Commercial bank loans provide short-term financial capital to businesses, and they finance consumer purchases of automobiles and other durable goods. Crusoe imputed value to each of the tools he had. A bakery worker does not want to be paid 200 bagels per week. For instance, if we used gold to back the money supply so that gold was redeemable for money and vice versa, then a large increase in the nation”’s gold stock as the result of a new gold discovery might increase the money supply too rapidly and thereby trigger rapid inflation. ”’ Small-denominated (less than $100,000) time deposits Funds from time deposits become availableat their maturity. The example essays in Kibin's library were written by real students for real classes. All three categories of near-monies imply substantial liquidity. ”’ Savings deposits, including money market deposit accounts A depositor can easily withdraw funds from a savings account at a bank or thrift or simply request that the funds be transferred from a savings account to a checkable account. In fact, electronic transactions allow people to save their time because they can make electronic transactions from anyplace and anytime they like. As we saw in Chapter 2, money is a social invention with which resource suppliers and producers can be paid and that can be used to buy any of the full range of items available in the marketplace. And an economy can effectively employ money as a unit of account only when its purchasing power is relatively stable. The money you place in a safe or a checking account will still be available to you a few weeks or months from now. This exemplifies the innate quest within the public to be extravagant. Money, however, is readily acceptable as payment. With this, the noble literate writers of the society along with the student community and young working professionals started writing papers, which helped us in collecting, essays … I have been teaching from Hosea for the last several weeks and also reading John Wesley’s Sermon #50 on the use of money. EssaySauce.com is a free resource for students, providing thousands of example essays to help them complete their college and university coursework. Conversely, lower prices increase the purchasing power of the dollar because fewer dollars are needed to obtain a specific quantity of goods and services. Do not use memorized examples. Use specific reasons and examples to support your opinion. Anything that is widely accepted as a medium of exchange can serve as money. Stabilizing Money”’s Purchasing Power Rapidly rising price levels (rapid inflation) and the consequent erosion of the purchasing power of money typically result from imprudent economic policies. It is ubiquitous nowadays for a mediocre family to own cars. They accept the deposits of households and businesses, keep the money safe until it is demanded via checks, and in the meantime use it to make available a wide variety of loans. Available from: