Task 1 Money, Foreign Exchange, Finance

Business Communication

1. How are money and currency defined?

Money is a resource that you can use equivalent to another product, used as exchange rate.

Currency is defined as a fake money, something that you don´t have in your pockets but than can also be used for exchanges. 

2. What are the differences between currency and money? 

Money is a physical object, its value can be measured in gold, silver, copper and many precious metal. 

Currency is an imposter account that steals your assets.

3. What are their most important characteristics?

Currency: Medium of the exchange, A unit of account, Portable, Durable, Divisible, Fungible

Money: Is the same that currency (portable, durable, fungible, divisible...) but with a plus, the store of value over a long period of time.

4. What is a Fiat currency?

Is a currency created by the gorvenment by an official decree and it is stored in the Federal Reserve, the Central Bank of the USA.

5. What are its characteristics?

It´s a simple piece of paper that has not value. The value of this paper is what people give it.

6. What is money and currency used for?

Are used as a form of exchange to get things we need to survive.

7. What does “store of value” refer to?

For me, the money can change its value every day, that´s why it does no have a real value

8. What was the currency used in the past?

Currency was used as an instrument of exchange, any product of that time could be used for an exchange.

9. What is the most beautiful way of money?

When it´s a store of value, found in a financial account.

10. What is a “solving system”?

It´s a sistem in wich governments use false coins to maintain power over the people, in this way they will always have the same value.

11. What happens when governments expand the currency supplies?

The prices rise, everything is more expensive and it´s called INFLATION.

12. What is barter?

It´s refers to a fair exchange, which is equivalent. 

13. What is Quantity of Easy? 

It´s a global phenomenon, created by governments. It´s just a smoke and mirrors term for currency creation.

14. What is the tendency of QEs around the world?

The value of money grew and grew every day making people richer, again, we can identificate the word Inflation.

Write a final reflection on the topic, mentioning what were the most important aspects you learned. 

It is interesting to know the history of things, in this case, the money, because it allows us to see en a different way everything that it´s a to have a coin in our hand, we can not imagine how many years of history exist in that metal, and it is exciting to understand how the things evolve over the years.

What I liked about the video was the facility that the ideas were exposed, the main idea is interesting and give us a reflection point.