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Week 6 Checkpoint Essay

368 words - 2 pages

Week 6 Checkpoint

The use of money acts as a unit of account given the amount of wealth a person has. When money acts as a unit of account given, then it can be defined as a group of similar prices that can be accepted and recognized by all people. The standard of living cannot be determined by the value of the dollar due to inflation, we need to take into consideration the factual numbers of the output of goods and services that are produced. Determining the economy’s skillfulness and willfulness that ...view middle of the document...

People needed food, water, and shelter to stay alive. Different people had different skills, such as the aboriginal people specialized in hunting for food and furs to exchange to the Europeans for goods that they had no idea what they were. As time went on, it became hard to determine the value of the cost of goods and services and it also became more complex to barter or create a barter system that was considered fair. This is where the money system comes into play.

A store of money is another way to divulge to save your money, instead of spending it today. There are several ways to store your money and make sure that it does not depreciate in value, but hopefully gain in value instead. Where you decide to store your money makes a big impact on the value of the money. If money is left out or stored in an unsafe place, the money can deteriorate over time and loose value. Another way to store your money for future use is to put money into CD’s, stocks, and bonds. This is the best way to save your money, since you can earn interest on the money you invest in the stock market.

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