$$$ Money Talk $$$

Value of Materials

noreply@blogger.com (,ø¤º° zee °º¤ø,) — Sat, 12 Jun 2010 12:07:00 +0000

Then comes what is called the coin. Metal was chosen as a medium of exchange because it has a high value so that the rage, durable and not easily broken, easily broken down without reducing the value, and easily movable. Metal is used as a medium of exchange because it met these conditions are gold and silver. Gold and silver coins also known as money management (full-bodied money). This means that the intrinsic value (the value of materials) of money equal to its nominal value (the value specified on the currency). At that moment, everyone is entitled to forge money, merge, sell or use, and have unlimited rights in the coin store.

Along with economic development, difficulties arise when the development of the exchange that must be served with a coin increases while the amount of precious metals (gold and silver) are very limited. The use of coins are also difficult to transactions that were created in large quantities of paper money

First banknotes in circulation is evidence of ownership of gold and silver as a tool / broker to make transactions. In other words, banknotes in circulation at that time the money is guaranteed 100% by gold or silver stored in smart gold or silver and can be redeemed at any time with a full guarantee. In further developments, the public no longer use gold (directly) as a means of exchange. Instead, they make the 'paper-proof' as a medium of exchange.

Definition

noreply@blogger.com (,ø¤º° zee °º¤ø,) — Sat, 12 Jun 2010 12:07:00 +0000

Money in traditional economics is defined as any medium of exchange that can be generally accepted. Medium of exchange that can be any object that can be accepted by everyone in the community in the process of exchanging goods and services. In modern economics, money is defined as something that is available and generally accepted as a means of payment for the purchase of goods and services as well as other valuable property and for payment of debt.
Some experts also mentioned the function of money as a means of payment delay.

The existence of money provides an easier alternative transactions than barter is more complex, inefficient, and less suitable for use in the modern economic system because it requires people who have the same desire to exchange and also the difficulty in determining the value. Efficiency is gained by using money in the end will encourage trade and division of labor which then will increase the productivity and prosperity.

At first in Indonesia, the money-in this case-Currency issued by the Indonesian government. But since the issuance of Law No.. 1968 13 years of article 26 paragraph 1, the right of governments to print money revoked. The Government then set the central bank, Bank Indonesia, as the only institution entitled to create money Kartal. The right to create money is called oktroi rights.

Money for Thee Development Process of a Nation

noreply@blogger.com (,ø¤º° zee °º¤ø,) — Sat, 12 Jun 2010 12:05:00 +0000

Money that we know today has undergone a long development process. At first, people not familiar with the exchange because everyone is trying to meet with business kebutuhannnya own. Human hunting if she is hungry, make their own clothing from materials that are simple, find the fruit for their own consumption, in short, anything that's gotten used to meet requirements. A further development of human mengahadapkan on the fact that what was produced was not enough to memenuhui all needs. To obtain the goods can not be reproduced themselves, they look for people who want to exchange goods owned by other articles needed by them. As a result emerges exchanged goods with the goods.

But in the end, many of the perceived difficulties with this system. Among these are difficult to find people who have unwanted goods and also want to exchange its goods and the difficulty to obtain items that can be exchanged with each other with a balanced exchange of value or almost the same value. To fix this, start those thoughts arise to use certain objects to be used as a medium of exchange. Objects defined as a means of exchange of objects that are received by the public (Generally Accepted) objects selected high value (difficult to obtain or have a magical and mystical values), or the things that is a primary need of daily ; eg salt by the Romans used as a medium of exchange and as a means of payment of wages. Influence of the Romans are still visible until now; the English call a wage as a salary derived from the Latin meaning salarium salt.

Goods that are considered beautiful and valuable, such as shellfish, ever be used as a medium of exchange before humans discovered the coin.

Although the medium of exchange already exists, there remain difficulties in the exchange. These difficulties were partly because the objects used as a medium of exchange has not been broken so that the determination of value for money, storage, and transportation (transportation) becomes difficult and also the difficulties arising from lack of staying power these objects so easily destroyed or was not durable.