Economics **PLEASE READ***
Post a response to classmate’s discussion post below. Must be at least 100 words!
Discuss the Concept of Money
A medium of exchange, a unit of account and a store of value are the three functions of money. Currency “is the physical money in an economy, comprising of coins and paper notes in circulation” as explained by Investopedia online. Currency easily meets all the functions of money by; being accepted as payment for goods and services, representing the value of goods and services, and holding its value over time.
Explain the Concept of Bartering
Britannica defines bartering as; “the direct exchange of goods or services – without an intervening medium of exchange or money – either according to established rates of exchange or by bargaining.” The lack of money used within a bartering creates a concept that fails to meet all the functions of money. In bartering as individuals agree to exchange goods and services that meet their needs, there is no medium of exchange, limiting their ability to seek out other sources. Without the ability to value and compare goods, services and other transactions, the bartering concept fails to meet the unit of account function. While some goods gain value over time, majority are unable to be saved for future use without losing their value making the store of value function unobtainable within the bartering concept.
Discuss a Form of Money
Oddly enough, since the Middle Ages, Italians used Parmesan cheese as currency. There are still banks today that continue to accept that same form of currency, Parmesan cheese, as collateral for loans. One of those banks being Credito Emiliano in the Emilia-Romagna Region. That bank is believed to hold approximately 430k wheels of parmesan, valuing 190 million euro, each with their own individual serial number.
The Scriptures Influence on Our Attitude and Actions towards Money
“For what does it profit a man to gain the whole world and forfeit his soul?” is a verse that will challenge me well into retirement. I never understood why someone couldn’t create a world they want through their accomplishments without losing their soul. What is ‘the whole world’ exactly? Is that CEO of a company you started at the bottom of? Is it becoming the president of a country? I guess that is where my challenge lies, determining what the ‘whole world’ exactly is. How much can someone obtain or achieve before losing their soul? Growing up, tithing came with a decided amount, 10 percent. It was a constant in my head, the need to sacrifice in order to provide that 10 percent. I’m not talking about sacrificing the fun times or the dinners out, I’m talking about real sacrifice. Having to fight the guilt of paying my bills or giving those last dollars, that 10 percent, to the church would eat me alive. I would feel unworthy, until the day a friend introduced me to 2 Corinthians 9:7, “each one must give as he has decided in his heart, not reluctantly or under compulsion, for God loves a cheerful giver.” With that, the guilt faded, and I knew that between God and myself, my tithing did not have to meet a minimum requirement as long as it was given righteously.