Chapter+7

Chapter 7 Money - anything that people accept as a form of payment The characteristics of money are acceptability, scarcity, durability, divisibility, and portability. Acceptability: Accepted as such by a group of people. Scarcity: there is a short supply of a product, causing the product to become more valuable. Durability: An item will not easily spoil or become damaged. Divisibility: Divide something into smaller units. Portability: Small enough item that people can carry around easily.

3 Main Uses Of Money 1) Measure of Value-tells you what you are buying is word 2) A Medium Of Exchange-Money works only if people are willing to trade goods or services for it. 3) Savings Mechanism-Some people save gold because they believe it will hold value in the future.

Currency is the form of money used by a specific country or region

Currency Exchange Rate is the rate at which one's country currency can be traded for another country's currency.

Hard Currency: Currency that can be exchanged for other currencies at uniformities in financial centers around the world.

Soft Currency is an unstable currency that is not exchanged at major financial centers.

Currency Value Fluctuation is the change in value of one country's currency when it is traded for another country's currency.

Compensate: Power people are likely to buy something to make up for a loss.

Risk is the possibility of loss when there is uncertainty associated with a risk present in day to day buying and selling processes between companies.

Exchange Rate Risk: Occurs when the currency exchange rate fluctuates as a transaction take

Transaction Risk: A risk associated with a buyer making installment payments on a purchase.

__The WORLD OF MONEY__ At the federal reserve bank they will pay you for taking a free tour and you will leave with real money in your pocket-$364. Have u ever want million dollars look like. Tounds of money and your money will be gone in 12 days. Find out why the fed's fights inflation and who are most affect by it and now you can choice a rate of inflation and the time of period. You can hold the handles of a suitcase of hundred dollar bills. Any bakns can printed their own money. And federal reserve system make a safety in the bank system. They allow us to consistently express the value of an item across borders of countries, oceans, and cultures.An exchange rate is simply the cost of one form of currency in another form of currency.Today, the U.S. dollar still dominates many financial markets. In fact, exchange rates are often expressed in terms of U.S. dollars. Currently, the U.S. dollar and the euro account for approximately 50 percent of all currency exchange transactions in the world.There are two main systems used to determine a currency's exchange rate: floating currency and pegged currency.

In the video how stuff works and money exchange In euro when you exchange their money to Indian rupees suppose you have 570 euros and you want to exchange for rupees it will come out to be way more in rupee than euros. 570 euros is worth 30,800.98 rupees.1.00 in INR money is worth 0.0229885 US dollars.But one US dollar is worth 43.5 INR.

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