barter system

Q: 1.) The bank charged Travis a $20 fee because his balance dropped below $0. He knows that he…

A: To avoid bank charges Travis has to clear all his dues and maintain a minimum balance of $0 so, the…

Q: What are the advantages of an economy using money as opposed to a barter system of exchange?

A: Money can be defined as any good that is widely accepted for purpose of exchange and repayment of…

Q: Why (not how) did money evolve out of a barter economy?

A: A market system with exchange of goods and services with goods and services is known as barter…

Q: As early as the year 1000 CE, nigeria used silver and other metal coins as currency.  This is an…

A: Commodity money is the money that as certain intrinsic value. The intrinsic value is derived from…

Q: A bank can make profit by: a)borrowing money from the government at 0% interest. b)giving you a…

A: Banks generate profits primarily through the intermediation process, where they accept deposits from…

Q: A main difference between using cigarettes and using dollars as money is that    have intrinsic…

A: Intrinsic value : The inherent value of an object or commodity that is not based on its monetary or…

Q: How did the creation of the Federal Deposit Insurance Corporation change the nature of banking in…

A: The Federal Deposit Insurance Corporation (FDIC) is a federal agency insuring deposits in U.S. banks…

Q: The fact that you can use money to compare the value of one good to another is a result of which…

A: Money:Monеy sеrvеs as a mеasurе of valuе bеcausе it providеs a common unit of account. Monеy does…

Q: True or false question: Making minimum payment will result in paying off your cards eventually?

A: Credit cards are a type of payment card that allows the holder to borrow funds from a financial…

Q: What is barter system in an economy and what are its drawback!

A: According to the given question Actually before the evolution of given money goods were actually…

Q: In our daily life we use credit cards and debits cards for payments. Are credits cards considered…

A: Anything that is extensively used as a medium of exchange and accepted as payment is considered to…

Q: What is the sharing economy phenomenon? Give a thorough explanation!

A: It is economic system define peer to peer base  It also incluse buissness to buissness intraction…

Q: Write a post that explains why money is not the universal measure of all value.

A: Money is the major consideration for all the people in today’s world. Without money the people…

Q: Suppose you’re at the mall shopping for a pair of shoes and run into NBA player LeBron James. You…

A: Money is any satisfactory that is comprehensively used and recognized in trades including the…

Q: How would you determine the interest rate that the bank charges on the transaction?

A: Many payments are made through our bank accounts and each transaction has a cost attached to it. The…

Q: and partial

A: A currency is money in any form while either in use or circulation being used as a medium of…

Inflation and Purchasing Power Theory

In economic terms, Inflation refers to the increase in the costs of various commodities which are used in daily lifestyle like food, clothes, transport, etc. over a specific time. It may lead to a fall in the purchasing power of the people and also affects the exchange rate of the currency because of the price increase. As the purchasing power falls the unit of the currency in the economy falls. When the prices of the commodities are decreased, then the purchasing power of the consumers will rise, then it will lead to deflation and changes the currency of the base economy to that of the foreign economy which will lead to change in exchange rates.