HTL 701 Lecture Notes - Lecture 2: Homeaway, Offshoring, Enterprise Holdings
20 Dec 2017
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What happened when money wasn"t invented: you would trade (aka barter) with direct exchange of goods and services; no money was needed/involved. I have a goat, you have a blanket; you needed a goat but i did not need a blanket so legal tenders were created: legal tenders: something both parties wanted. Us banknotes: the most frequently falsified: usd, used more frequently & not big value enough for suspicion. Functions of money: store of value, medium of exchange, unit of account. Exchange of currencies: how do they get determined, circulation it"s up to the central bank that"s independent of government and governs circulation and interest for example. Mongolia most of it is desert and there"s never really rich people there and are a very poor country although they"re not small. Big mac index http://www. economist. com/content/big-mac-index: an alternative to currency exchange rate to see value in different parts of the world.
