Blog Video Summaries
3/25/16
1st Video Summary:
The first video was basically an introduction to the concept of money. The woman went into depth about the three types of money as well as the three functions of money. The three types of money are Commodity Money, Representative Money, and Fiat Money. Commodity Money is where a good is used as currency but also serves other purposes; for example, in Africa they used to use cow's as money, but they are also used as food or hide. Representative Money is where whatever currency is being used is representative of a specific quantity of metal. Fiat Money (what we use today) is where money's value is backed by word of the government. The three functions of money are: Medium of Exchange, Store Value, and Unit of Account. Medium of Exchange means that through money, exchange for goods and services occur. Store Value means that when we out money into any type of bank or account, we expect to be able to use it at the same value as when we put it in. Unit of Account means that we often equate the price of something with it's quality.
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