money and banking all values in the

money and banking
all values in the economic system are measured in terms of money. our goods and services are sold for money, and that money is in turn exchanged for other goods and services. coins are adequate for small transactions, while paper notes are used for general business . there is additionally a wider sense of the word 'money', covering anything which is used as a means of exchange, whatever form it may take. originally, a valuable metal (gold,silver or copper) served as a constant store of value, and even today the american dollar is technically 'backed' by the store of gold which the US government maintains . because gold has been universally regarded as a very valuable metal, national currencies were for many years judged in terms of the so-called 'gold standard'. nowadays however national currencies are considered to be as strong as the national economies which support them.

valuable metal has generally been replaced by paper notes. these notes are issued by governments and authorized banks, and are knows as 'legal tender'. other arrangements such as cheques and money orders are not legal tender. they perform the function of substitute money and are known as ' instruments of credit'. credit is offered only when creditors believe that they have a good chance of obtaining legal tender when they present such instruments at a bank or other authorized institution. if a man's assets are known to be considerable, then his credit will be good. if his assets are in doubt, then it may be difficult for him to obtain large sums of credit or even to pay for goods with a cheque

the value of money is basically its value as a medium of exchange, or, as economists put it,its 'purchasing power'. this purchasing power is dependent on supply and demand. the demand for money is reckonable as the quantity needed to effect business transactions. an increase in business requires an increase in the amount of money coming into general circulation. but the demand for money is related not only to the quantity of business is done. the supply of money, on the other hand, is the actual amount in notes and coins available for business purposes. if too much money is available, its value decreases, and it does not buy as much as it dit, say, five years earlier. this condition is known as 'inflation'

banks are closely concerned with the flow of money into and out of the economy. they often co-operate with governments in efforts to stabilize economies and to prevent inflation. they are specialists in the business of providing capital, and in allocating funds on credit. banks originated as places to which people took their valuables for safe-keeping, but today the great banks of the world have many functions in additional to acting as guardians of valuable private possessions

Banks normally receive money from their customers in two distinct forms : on current account , and on deposit account. with a current account, a customers can issue personal cheques . no interest is paid by the bank on this type of account. whit a deposit account, however, the customer undertakes to leave his money in the banks for a minimum specified period of time. interest is paid on this money.

the bank in turn lends the deposited money to customers who need capital. this activity earns interest for the bank. and this interest is almost always at a higher rate than any interest which the bank pays to its depositors. in this way the bank makes its main profits.

Hasil (Bahasa Indonesia) 1:

money and banking all values in the economic system are measured in terms of money. our goods and services are sold for money, and that money is in turn exchanged for other goods and services. coins are adequate for small transactions, while paper notes are used for general business . there is additionally a wider sense of the word 'money', covering anything which is used as a means of exchange, whatever form it may take. originally, a valuable metal (gold,silver or copper) served as a constant store of value, and even today the american dollar is technically 'backed' by the store of gold which the US government maintains . because gold has been universally regarded as a very valuable metal, national currencies were for many years judged in terms of the so-called 'gold standard'. nowadays however national currencies are considered to be as strong as the national economies which support them. logam berharga umumnya telah digantikan oleh kertas catatan. Catatan ini dikeluarkan oleh pemerintah dan Bank resmi, dan tahu sebagai 'sah'. pengaturan lainnya seperti cek dan Wesel yang tidak sah. mereka melakukan fungsi pengganti uang dan dikenal sebagai 'instrumen kredit'. kredit ditawarkan hanya ketika kreditor percaya bahwa mereka memiliki kesempatan yang baik untuk mendapatkan alat pembayaran yang sah ketika mereka hadir instrumen tersebut di bank atau lembaga berwenang lainnya. Jika seseorang aset dikenal cukup, maka kredit akan baik. Jika aset ragu, maka mungkin sulit baginya untuk mendapatkan sejumlah besar kredit atau bahkan untuk membayar barang dengan ceknilai uang pada dasarnya adalah nilai sebagai alat tukar, atau sebagai ekonom meletakkannya, 'daya beli'. Inilah daya beli bergantung pada pasokan dan permintaan. permintaan uang reckonable sebagai jumlah yang diperlukan untuk transaksi bisnis efek. peningkatan bisnis memerlukan peningkatan jumlah uang yang masuk ke sirkulasi umum. Tapi permintaan uang berhubungan tidak hanya untuk jumlah bisnis dilakukan. pasokan uang, di sisi lain, adalah jumlah yang sebenarnya dalam uang kertas dan koin tersedia untuk tujuan bisnis. jika terlalu banyak uang tersedia, nilainya menurun, dan tidak membeli sebanyak itu dit, mengatakan, lima tahun sebelumnya. kondisi ini dikenal sebagai 'inflasi'banks are closely concerned with the flow of money into and out of the economy. they often co-operate with governments in efforts to stabilize economies and to prevent inflation. they are specialists in the business of providing capital, and in allocating funds on credit. banks originated as places to which people took their valuables for safe-keeping, but today the great banks of the world have many functions in additional to acting as guardians of valuable private possessions Banks normally receive money from their customers in two distinct forms : on current account , and on deposit account. with a current account, a customers can issue personal cheques . no interest is paid by the bank on this type of account. whit a deposit account, however, the customer undertakes to leave his money in the banks for a minimum specified period of time. interest is paid on this money. the bank in turn lends the deposited money to customers who need capital. this activity earns interest for the bank. and this interest is almost always at a higher rate than any interest which the bank pays to its depositors. in this way the bank makes its main profits.