What is the value of money?
Answers: what ever the market says it is.
paper money is supposedly backed on gold meaning there is actually the same amounto fo gold to support the money that is printed from any one country.
So if they have a million in paper money they have to have a million in gold to back that paper money
Well, historically it used to be Gold. All central banks which issue currency hold gold reserves. The amount of gold reserve vs. the outstanding currency notes/coins (various denominations) used to determine the value of money. However, globalisation and huge international trade made that infeasible and currencies are now vallued on basis of combinations of bilateral trade, multilateral trade, commodities reserve etc.
Still, at many times, one simple yardstick still used is to compare with Gold. If $1 buys you X grams of gold today and $1.2 tomorrow, then money value of $ has gone down.
Believe or not, McDonald's big mac is the unofficial commodity of comparision for currencies in various countries.
This is a pretty open ended question because the value of money is different depending on who's having the discussion. For this discussion I will provide three views on monetary value hopefully one will answer what you are looking for.
Global value: The value of money on a global scale is determined by the largest financial trading house on earth called the FOREX and the buying and selling of currencies. Think of it like the stock market except the companies are actual currencies ie: US Dollar, Japanese Yen, British Pound, Euro, etc. Much bigger than the stock market in terms of liquidity the stock market trades billions daily while the FOREX trades in the trillions daily.
Individual country: The value of money for the country you live in is largely based on economic factors that determine how much you can buy (goods/services) with that currency. These things include the governments fiscal or monetary policies, the Federal Reserve (how they control the dollar through key interest rates), and the amount of money printed (if too much money is printed the value is reduced and we have inflation and that is a bad thing), among other things.
Historically the true value of money is strongest when backed by Gold. It is the gold standard that holds precedence over any other method to ensure a strong and stable currency or money. Right now we have "Fiat Money" or money that is not backed by gold, but by the "good credit and trust" we have in our government (which has been very very shaky as of late and why our dollar is faltering not just here in the US, but globally as well).
Finally, the value of money when talking about what it means to the individual is a personal belief. For some the value of money is a means to an end ie: "I need money to buy food, groceries, a home or car, etc". For others the value of money is more than a means to an end but a way to validate their lives and achievements, the more money they have the more successful they feel. And there are some that see the value of money is a bad thing which is where the saying the "love of money is the root of all evil". Many of us form our beliefs on how we value money at a young age which allow us to ultimately be responsible or spendthrift with our money.
Robert Kiyosaki and Suze Orman are experts on the value of money and provide good concepts about the value of money and how to be responsible with it.
Hope this helps...good luck!
Everytime foreign countries sell the dollar, the higher inflation and the national debt goes, so goes the value of money.
Which wall will gain me the most postive return if I invest $3500?
I don't want tactics such as trade stocks a moment ago tell me which dune you think is best.Answers: I newly met with a friend who does investments, he recomended purchasing the Tweedy Browne Inc.s Mutual Fund (Large Cap).
It have a long record of implementation and probably 7% return is safe to assume. Also, the souk has be low this week, so now would be a upright time to get going beside a Roth IRA. Vanguar dfunds also have pious reputation
everbank
How do I learn the actual cash on hand that a company like Citigroup has on hand to pay expenses right now?
Answers: You don't. It is reported only quarterly. And the quarterly reporting is subject to manipulation.
study their balance sheet.