How & Why Change in Economy Change the Stock Market
When we want to understand the money then we have to understand the how the money was and why it has great importance in our economy when you think about the history and the barter system the exchange of one goods or services from another to obtain all the things they need and this was the time when the commodity money system was on the society but not the time when the currency is is playing the role so we have to be very clear understanding of the money and its relationship with the economy.
Understanding Money:
Money itself defines what the money does anything used as a medium of exchange is known as money and the main function of money is the medium of exchange and its store the value and it is also unit of account and the standard of deferred payment when we think about the barter system where exchange can take place only if there is a double coincidence of wants between two transaction parties but we are no in standard society where we are using the currency system where there is no and is requirement of barter system or double coincidence of the product and services so when we want to check the properties of money like durability of money portability divisibility uniformity frangibility Limited supply and acceptability of the money then we have to understand that it means its unit should be same and it means every unit is perceived as perfectly interchangeable by the users so we have to understand the theater money means which money has no intrinsic value and cannot be redeemed for species or specie through a government described so let’s understand the economy.
Properties of money and its effect on Economy:
We want to understand the effect of economy on stock market that so we have to understand the properties and function of the money why the economy if the stock market and the question is behind the understanding of the money we understand the stock market then we must understand the economy because the economy is the summary of all the money of the country or all the money of any country so let’s define the function and properties of money.
- Durability: The money needs to be lost the things which we all have to understand the money should be durable in nature and the money with the people use should be preserved for age it is for long time
- Portable: This is one of the characteristics of money that money should be easy to carry around convenience and it should be easy to use so that any people is convenient to use carry then there is an important for existence of money
- Division: The money which is available in society or with the people use can be broken down into smaller denominations because it’s society there are lot of works which is an equal show the breaking down of the money into smaller denomination make the economy sustainable and this is a demand of the economy
- Hard to Counterfeit: It can’t be easily tracked or copied there are lot of people organizations try to make this possible so that the people not easily check the current system or not easily copy the currency system because the currency is important till now there is no pen copy we should think that when the currency is copied by everyone then no one will accept the currency because everyone will copy the currency and this is not good for the society or the economy to sustain so money should be hard to counterfeit
- Acceptability: It must be Generally accepted by the population and the currencies important till now it is accepted by the society for the people of the society when we think about the currency of the money which is not accepted by other then there is no money or there is no existence of money or currency system so acceptability should be maintained
- Value: Generally Mani halt the value of time and when we think about the history of the money then we understand how the money involved the time when there was a barter system where you will get the product only by giving those product which is acceptable by the other people and this was really so hard but the time comes and I know that technology is a world and we are on the time of holding the value of the money and we are using a common platform for common currency which means and which value is accepted by the other people
Store of Payments:
- Medium of Exchange:
- Unit of Accounts:
- Store of Value:
- Standard if Differed Payments:
Type of Money in our Economy:
- Redeemable Currency:
- Fiat Currency:
- Near Money:
- Credit Cards and Debit cards:
- Crypto Currencies:
As we have all understood that what we have today or what we use today is the result of centuries, the way we used a point system before, we used coins and it would mean coins. It was said that he has got that much internship of coins. Intensive to say that that coin was worth that much at that time, but when we all came to the pet currency, then the face value was mainly discriminated and any connection to it would be intrinsic. The value is no longer the same, all of us started using credit money again, such as near money, that is, we all started paying money through cake, a check return document which has a date and sign and it is unconditional And if there is a person to do such a thing, then he does a date and signature and gives it to the person to whom he wants to give the money through check. With this time we use credit card and debit card as we grow. What is it like that which makes the transaction easy, helps you to carry money, you paper paper Credit cards and debit cards are not carried away from one person to another. It makes transactions easy and convenient. It makes use of transactions like theft to the moon because paper money can be stolen as well as technology increases. As an alternative currency with still giving good performance or depending on the market, mainly demand and supply crypto currency is a currency that depends on demand and supply and it is a universally accepted currency in any country. Is where its value is the same