3 - Money, foreing exchange and finance.

 Watch the video, answer the following questions. 

1. How are money and currency defined? Money is defined as a tool to exchange your time, it is a container where you deposit your economic energy. The currency is defined as a silent impostor who steals your assets, your time and your freedom.

2. What are the differences between currency and money? Money will always have the same value all over the world and currency is paper or printed metal that the government prints and it gives its value.

3. What are their most important characteristics? Currency is a medium of exchange, a unit of account. It is portable, durable, divisible, and something called fungible. Fungible means that each unit is the same as the next unit. Money is all of those things plus a store of value over a long period of time.

4. What is a Fiat currency? They are currencies based on trust, they exist at the disposal of a government with no other support than faith in it. They have their printing presses, and the bargaining chip flows from these presses and then they give it the designation of fiat, which makes the currency official.

5. What are its characteristics? It's just worthless paper, but when Ben Bernanke gives it the special sign, and they have the cult meeting - at the Federal Open Market Committee meetings, it suddenly becomes currency.

6. What is money and currency used for? They are used to be able to be exchanged for goods or services and that we can be aware that they have the same value as what we want to acquire.

7. What does “store of value” refer to? It refers to the purchasing power that money should keep for a long period of time.

8. What was the currency used in the past? Silver and gold were used but mainly gold, also materials such as salt, sugar and many other things.

9. What is the most beautiful way of money? Cannot Print Gold, it is the best money because there is nothing similar. It is divisible, it is permanent, it is a repository of value, it is an accounting unit and it does not disappear, and it cannot be increased. That makes gold the best money.

10. What is a “solving system”? It refers to the fact that it maintains control over the government. Governments do not like gold because they benefit from fiat exchange currencies and will do everything they can to discredit gold.

11. What happens when governments expand the currency supplies? If the amount of currency is expanded, eventually prices will go up. the phenomenon of inflation will occur.

12. What is barter? It is the action of exchanging goods or services for others without the intervention of money.

13. What is Quantity of Easy? QE started with the banking bailouts back in 2009. This currency was created out of thin air and then given to the banks who paid themselves record bonuses in reward for crashing the world economy.

14. What is the tendency of QEs around the world? The value of currencies is always increasing and this affects all countries equally, so products or services also increase their value.

Write a final reflection on the topic, mentioning what were the most important aspects you learned. 

I found the whole video very interesting, I learned new things such as the difference between money and currency, which I think is very important to know in the career I am studying. I was also able to remember concepts that I had already seen in previous classes such as inflation and how it can have both good and bad effects. Another interesting thing is how gold has always been a very valuable exchange method since ancient civilizations and how it will always be so important in the economy.