What are examples of commodity money?
Examples of commodity money are gold and silver coins. Gold coins were valuable because they could be used in exchange for other goods or services, but also because the gold itself was valued and had other uses. Commodity money gave way to the next stage-representative money.
What is fiduciary currency?
Fiduciary money, or currency, refers to banknotes and coins in circulation in the economy. This is the liquidity available to economic actors to carry out transactions. It is a means of payment. Gradually, all the world’s geographical areas created their own currencies, thus facilitating trade.
What is social system of money?
The economy as a social system is differentiated when money appears (as a means of communication that, at the same time, enables communication or raises the probabi- lity of its occurrence). Money provides a distinct communicative mechanism—payments.
How do you explain commodity money?
Commodity money is money whose value comes from a commodity of which it is made. Commodity money consists of objects having value or use in themselves (intrinsic value) as well as their value in buying goods.
What is an example of fiduciary money?
Fiduciary money depends for its value on the confidence that it will be generally accepted as a medium of exchange. Examples of fiduciary money include cheques, banknotes, or drafts.
Is gold fiduciary money?
gold or silver but of fiduciary money—promises to pay specified amounts of gold and silver. These promises were initially issued by individuals or companies as banknotes or as the transferable book entries that came to be called deposits.
Why is money socially defined?
To say money is socially defined means that: society, acting through Congress, specifies what shall be included in the money supply. B. whatever performs the functions of money extremely well is considered to be money.
How is money a social relation?
The important point that Marx emphasized is that value—and therefore money also, in the form of prices—is ultimately a social relation: a relation between the labor of different individuals that, under a system of generalized commodity production and exchange, expresses itself as a relationship between things.
What does social capital involve?
It involves the effective functioning of social groups through interpersonal relationships, a shared sense of identity, a shared understanding, shared norms, shared values, trust, cooperation, and reciprocity.