MONEY AND

Apuntes

•Oldest System of Exchange Barter was the earliest method of exchanging goods and services used during the Middle Ages in Europe. •How the Barter System Works To trade, you must find someone who owns a product you need and is willing to exchange it for a product you have that they want. •Origin of Money in Trade Money emerged as the market economy expanded, facilitating easier exchanges. •Importance and Uses of Money Money serves as a measure of the value of goods and services. It allows us to exchange money for goods and services, simplifying transactions. •What is Currency? Currency is a system of money in general use within a specific country. •Main Services Provided by Money - It measures the value of goods and services. - It acts as a medium of exchange. - It serves as a standard of future payment. - It provides a way to save wealth. •Inflation and Deflation Inflation occurs when prices of goods and services increase, while deflation happens when prices decrease. •What is a Moneylender? A moneylender is a person whose business is lending money to others for interest. •What is Interest? Interest is the profit depositors earn from banks when they ...