Name SIN

1. Franklin Runtu 130611031402. Thiopiloh melmambessy 130611031543. Mutiara Nainggolan 130611031704. Vayska Runtuwene 130611032105. Reivita Tampati 130611030646. Hanna Pangkey 130611031747. Chintia Mantiri 13061103128

Money is any object or verifiable record that is generally accepted as payment for goods and services and repayment of debts in a particular country or socio-economic context.

Classically it is said that money acts as a unit of account, a store of value, and a medium of exchange, and standard of deferred payment

Unit of account

A unit of account is a standard numerical unit of measurement of the market value of goods, services, and other transactions. Also known as a "measure" or "standard" of relative worth and deferred payment, a unit of account is a necessary prerequisite for the formulation of commercial agreements that involve debt

Store of value

To act as a store of value, a money must be able to be reliably saved, stored, and retrieved – and be predictably usable as a medium of exchange when it is retrieved. The value of the money must also remain stable over time. Some have argued that inflation, by reducing the value of money, diminishes the ability of the money to function as a store of value

Medium of exchange

When money is used to intermediate the exchange of goods and services, it is performing a function as a medium of exchange. It thereby avoids the inefficiencies of a barter system, such as the double coincidence of wants problem.

Standard of deferred payment While standard of deferred payment is distinguished

by some texts, particularly older ones, other texts subsume this under other functions. A "standard of deferred payment" is an accepted way to settle a debt –a unit in which debts are denominated, and the status of money as legal tender, in those jurisdictions which have this concept, states that it may function for the discharge of debts. When debts are denominated in money, the real value of debts may change due to inflation and deflation, and for sovereign and international debts via debasement and devaluation.

Most authors find that the first two are nonessential properties that follow from the third. In fact, other goods are often better than money at being intertemporal stores of value, since most monies degrade in value over time through inflation or the overthrow of governments.

Each country has its own money, or currency, that is used as a medium of exchange within that country (some countries share a type of currency, such as the euro used by the European Union). The currency of one country can be exchanged for the currency of another via a currency exchange. The current exchange rate determines how much of one currency must be used to purchase a specified amount of the other currency. For example, the exchange rate between the euro and the US dollar may be 1.2596, where 1 euro can buy 1.2596 US dollars.

What Is the Advantages and Disadvantages of Money?

Money is a very powerful tool. It has advantages and disadvantages depending on how you perceive to use it. One advantage of money is survival. With money, you can support yourself. Money provides purchasing power. It is used to buy food, pay the rent or mortgage, send the children to school, and for medical expenses. If you do not use the money wisely, there will be disadvantages. Greed of money, or the lack of it, can cause someone to want more and will try to get into illegal activities such as robbery or murder.

Why there are so many people too much time on working? Why do we have to sacrifice our weekends to work for extra hours? The most basic reason is for money. People would do whatever it takes to earn money as much as possible. They think that having a lot of money is good. However, in my opinion, there are both advantages and disadvantages of having a lot of money.The advantages of having a lot of money is something that everyone can easily tell you. When you have plenty of money, you'll be able to buy whatever you like.

Having a lot of money will also make you have a happier life. Although it can't give you health, happiness, love. it makes you feel good when you wake up every day and don't have to worry about all the bill you have to pay because you don't have much money while everything is so expensive. However, there are always two side of a thing. So is money. Not many people know clearly the disadvantages of having a lot of money. Having much money makes you become a lazy person. Instead of working hard, you'll just spend your time buying luxuries because you think that you've reached your biggest purpose: earning a lot of money.

Furthermore, people who have a lot of money will have a different outlook in life. They'll look down on people who can't have as much money as they do. This'll lead to an ever-lasting disagreement between high-class people and low-class people.Having a lot of money isn't a bad thing at all, only when you know how to control it. Therefore, think carefully before doing anything with your money.

Money Movements - Money Circulation

In a circle there is no beginning and no end. Once a bill has been put into circulation it can run around with no end, no matter what purpose it is being used for. Let's clarify this in simple models with five participants:

A purchases from B.- B doesn't need the received money and lends it to C. - C purchases from D. - D lends it to E, who in turn pays a service he receives from A. Thus, the rotating bill was used three times for purchases and twice for lending. If B had not lent out his surplus, then the following acts would not have been possible. This simple example shows again the risks, which result from holding money back.

In the next model of circulation the debts get repaid:A buys from C, who repays his debt to B. - B purchases from E, who repays his debt to D, who in turn purchases from A. Again the circle is closed and can start anew at random sequence.

Dalam model berikutnya sirkulasi utang mendapat balasnya: A membeli dari C, yang melunasi utang kepada B. - pembelian B dari E, yang melunasi utang kepada D, yang pada gilirannya pembelian dari A. Lagi lingkaran tertutup dan? bisa mulai lagi pada urutan acak.

There are also some company that actually has their own purpose to manage money from their customers

A financial institution licensed as a receiver of deposits. There are two types of banks: commercial/retail banks and investment banks. In most countries, banks are regulated by the national government or central bank. which does most or all of the following: accept deposits, pay interest, clear checks, make loans, act as an intermediary in financial transaction, and provide other financial services to its customer.

The Western Union Group is the world's largest international money transfer service provider. Western Union has several divisions, with products such as person-to-person money transfer, money orders, business payments and commercial services. They offered standard "Cablegrams", as well as more cheerful products such as Candygrams, Dollygrams, and Melodygrams. Based on 135 years or more of experience in money transfer operations, Western Union provides an international money transfer service at about 490,000 locations in 200 countries*1. The core business is listed on the New York Stock Exchange.

Asian Financial Crisis in Indonesia

The Asian Financial Crisis started on 2 July 1997 when the Thai government, burdened with a huge foreign debt, decided to float its baht after currency speculators had been attacking the country's foreign exchange reserves. This monetary shift was aimed at stimulating export revenues but proved to be in vain. It soon led to a contagion effect in other Asian countries as foreign investors - who had been pouring money into the 'Asian Economic Miracle countries' since a decade prior to 1997 - lost confidence in Asian markets and dumped Asian currencies and assets as quickly as possible.

The Indonesian Crisis Begins

Although the Asian region showed worrying signs, foreign investors initially kept confidence in the Indonesian technocrats' ability to weather the financial storm (as they had done before in the 1970s and 1980s). But this time, however, Indonesia would not get off scot-free. It became the hardest-hit country because the crisis not only had economic but also significant and far-reaching political and social implications.When pressures on the Indonesian rupiah became too strong, the currency was set to float freely starting from August 1997. Soon it began depreciating significantly. By 1 January 1998, the rupiah's nominal value was only 30 percent of what it had been in June 1997.

In the years prior to 1997 many private Indonesian companies had obtained unhedged, short-term offshore loans in dollars and this enormous private-sector debt turned out to be a time bomb waiting to explode. The continuing depreciation of the rupiah only worsened the situation drastically. Indonesian companies rushed to buy dollars, thus putting more downward pressure on the rupiah and exacerbatingthe companies' debt situation. It was certain that Indonesian companies (including banks; some of which were known to be very weak) would suffer huge losses. New foreign exchange supplies were scarce as new loans for Indonesian companies were not granted by foreign creditors. As the government of Indonesia was unable to cope with this crisis it decided to seek financial assistance from the International Monetary Fund (IMF) in October 1997.

And as we know, money was introduced to societies as a means of making economic transactions simpler and more efficient, and it mostly succeeds in that regard. In some situations, items other than officially designated currency have been used as money in various economies.

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