Money and how we use it?
We heard this lot from people and some people did not know about the answer. We knew that someone who makes lots of money has a high income and a person who has lots of money is wealthy.
As I said before, how did people use money in the past and defined of money is an asset that is generally accepted as payment for goods and services or repayment of debt. On the other hand, Money has three characteristics:
1. Means of payments. (Used in exchange for goods and services).
2. Unit of account. (Used to quote prices) .
3. Store of Value. (Used to move purchasing power into the future).
From page 72 and 75 I find some difficult to understand the inflation and how it works. Also, M1 and M2 on table 2.1 was confused me. I will ask students in the class what does it mean and how it calculates?
Thanks for your honesty Faisal. If things are confusing for you also please raise them in class so that we can support your learning.
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