BUSN 70 Lecture Notes - Lecture 38: American Express, Cryptocurrency, Precious Metal
13 Mar 2021
School
Department
Course
Professor
Document Summary
Finance = the study of money; how it"s made, how it"s lost, and how it"s managed. Money (currency) = anything generally accepted in exchange for goods and services. Fiat money is a paper money not readily convertible to a precious metal such as gold. Gained full acceptance during the great depression in the 1930s. In the u. s. , paper money is really a government note or promise, worth the value specified on the note. Before fiat money, the trade of goods and services was accomplished through bartering. Trading one good or service for another of similar value. Inefficient because not always divisible and can be complicated in multiple-party transactions. Money serves as a common standard or yardstick of the value of goods and services. Money serves as a way to accumulate wealth (buying power) until it is needed. The value of stored money is directly dependent on the health of the economy.
