- NEW!
by anguilla on May 15th, 2009
Within a country, the people have to agree that the value of paper money is backed up by their country. In the US, the money is backed up by gold stored in various places. While you can no longer exchange your paper money for gold (or silver), the fact that everyone agrees to accept it in exchange for goods or services gives it a practical value.
For our country's money to be worth anything to ANOTHER country, the other country has to believe that it is truly backed up by gold. That's why we can't just print as much money as we want...it wouldn't be backed up by anything, and so it wouldn't mean anything to other countries.
That's a pretty simplistic answer, but I think you can get the idea.
by Anonymous T on September 2nd, 2009
Hope, faith and trust.
by puzzled on September 2nd, 2009
What gives money its value is the promise to pay. It's the confidence that promise will be honored by everyone else, or at least all the purveyors of goods and services you meet.
The payment will be in goods and services, most countries abandoned the Gold Standard long ago.
The Gold Standard was seen as limiting economic growth, without inflation, to the production of the gold mining industry.
Now it's value is nothing more than that confidence that it will be honored and its value returned in goods and services.
by puzzled on September 2nd, 2009
_
What is the meaning of notional value?
by Answerbag Staff on June 30th, 2010
| 1 person likes this
What color is the 5 euro bank note?
by Answerbag Staff on May 28th, 2010
| 1 person likes this
Why are most currencies pegged to the U.S. dollar?
by Answerbag Staff on April 29th, 2010
| 1 person likes this
What would you buy if you had $10? What would you buy with a million dollars? How is the amount of money you spend related to your values?
by jaflor on September 8th, 2011
| 1 person likes this
What is truly a treasure? In other words, what are the things you really want to keep? Explain.
by jaflor on September 8th, 2011
| 1 person likes this
You're reading What give money its values
Your favorite Q&A site is on Facebook! Become a fan to connect with the ever-growing community of Answerbaggers, share your thoughts and find out what Answerbag's up to next!
Comments