the concept of money - my money week presentation
DESCRIPTION
A presentation on the concept and history of money delivered for the students in the International School of Cluj, as a part of the activities in My Money Week event. Burcash was the main partner in personal finance education.TRANSCRIPT
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My Money Week , 9th of May, Cluj-Napoca
The concept of MONEYby Gabriel Dombri
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Today’s subjects:
• The concept of money1. • The functions of money2.
• Types of money3.
A brief chronology of money
4.
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“I am not interested in money but in the things of which money is the
symbol.”
[Henry Ford]
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1. The concept of money
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The concept of money
What is the difference between these banknotes?
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The concept of money
What is the difference between these items?
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The concept of money
So, then: What is money?
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The concept of money
Money =
any object accepted as means of exchange within a certain society or social context.
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The concept of money
To create money, we need:
+ a social circumstance (i.e. the others)+ a market+ some objects (useful or not)+ some needs or wishes+ some perceived value+ lots of trust in one another!
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2. The functions of money
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The functions of money
Money is an instrument with various functions:
"Money is a matter of functions four, a medium, a measure, a standard, a store."
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The functions of money
The functions:
1. A medium of exchange
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The functions of money
The functions:
1. A medium of exchange2. A unit of account
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The functions of money
The functions:
1. A medium of exchange2. A unit of account 3. A standard of deferred payment
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The functions of money
The functions:
1. A medium of exchange2. A unit of account 3. A standard of deferred payment
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The functions of money
The functions:
1. A medium of exchange2. A unit of account 3. A standard of deferred payment4. A store of value
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3. Types of money
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Types of money
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Types of money
Commodity money
Representative money Fiat money
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Types of money
Commodity money =
is money whose value comes from a commodity out of which it is made.
It is objects that have value in themselves as well as for use as money.
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Types of money
Commodity money =
GoldSilver CopperCattleStonesShellsBarleyCigarettesCandy
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Types of money
Representative money = Objects that don’t have real value in themselves, but their value come from either the commodities they stand for or from a government regulation or law.
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Types of money
Representative money
Commodity-backed money
Fiat money
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Types of money
Representative money
Commodity-backed money
Fiat money
- Gold certificates- Silver certificates
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Types of money
Representative money
Commodity-backed money
Fiat money
- Gold certificates- Silver certificates
- Bills of credit- Banknotes- Coins- All our money
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Types of money
Monetary systems and institutions:
• Banks
• Gold standard
• Bretton Woods System
• Nixon shock
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3. A brief chronology
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Chronology of money
100,000 years ago ->
• Barter methods• Gift economy
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Chronology of money
100,000 years ago ->
• Barter methods• Gift economy
3000 BC ->
• Mesopotamia – the shekel• Americas, Asia, Africa – shell
money
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Chronology of money
Shell money
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Chronology of money
6500 BC ->
• Lydia – the silver coins• Europe, Asia – metal
coins7th century AD ->
• China – first paper money• Medieval Italy, Flanders – paper
money
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Chronology of money
Lydian coin:
First paper money, China
Denaris banales:
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Chronology of money
19th century ->
• Europe – gold & silver standard, banknotes
• USA – gold standard, banknotes
20th century ->
• Bretton Woods – gold & dollar• 1970’s – Fiat dollar• Cards, ATMs
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Chronology of money
21th century ->
• Financial institutions• Credit & debit cards• Online payments
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Chronology of money
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Thank you!
I am:
Gabriel DombriMarketing consultant
W: www.burcash.ro
W: www.gabrieldombri.com