THE MONEY

THE MONEY


History of moneyMoney as we know it today has undergone a long development process. At first, people are not familiar with the exchange because each person trying to fulfill kebutuhannnya own effort. Humans hunt if he is hungry, make their own clothes from simple ingredients, look for fruits for their own consumption; in short, what is obtained that is being used to meet their needs. The subsequent development of human mengahadapkan on the fact that what is produced is not enough to memenuhui all needs. To obtain items that can not be produced by themselves, they are looking for people who want to exchange goods owned by other goods needed by him. Consequently comes sistem'barter'yaitu exchanged goods with goods. But in the end, a lot of the perceived difficulties with this system. Among these are difficult to find people who have the desired item and also want to exchange its goods and difficulties in obtaining goods can be exchanged with each other to exchange value equal or nearly equal in value. To overcome this, start arise thoughts to use certain objects to be used as a medium of exchange. The objects are defined as a medium of exchange that is objects received by the public (Generally Accepted) objects selected high value (difficult to obtain or have mangis and mystical value), or objects that are the primary needs of everyday ; for example by the Roman salt is used as a medium of exchange and as a means of payment of wages. The influence of the Romans are still visible to this day: the English call a salary wages derived from the Latin word meaning salarium salt.
Goods that are considered beautiful and valuable, as this shell, once used as a medium of exchange before humans found the coin.Although the exchange of existing tools, difficulties in the exchange remain. Difficulties were partly due to objects that have not been used as a medium of exchange so that the fractional determination of value for money, storage (storage), and transport (transportation) becomes difficult to do as well as the difficulty arises due to the lack of durability of such objects so easily destroyed or not durable. Then came the so-called money logam.Logam chosen as a medium of exchange because it has a high value so that the general vogue, durable and not easily broken, easily broken down without reducing the value, and easily moveable. Metals are used as a medium of exchange because it meets these requirements is gold and gold and silver metal perak.Uang also referred to as the money (full bodied money). That is, the intrinsic value (the value of the material) is equal to the nominal value (values ​​listed in the currency). At that time, everyone is entitled to forge money, merge, sell or use it, and have the right not limited to storing coins. Along with economic development, there was a presumption trouble when the development of exchange that must be served with a coin increases while the amount of precious metals (gold and silver) is very limited. The use of coins is also difficult to deal large amounts of paper money that was created at first banknotes in circulation is evidence of ownership of gold and silver as a tool / intermediary to conduct transactions. In other words, banknotes in circulation at the time the money is guaranteed 100% by gold or silver that is stored in the goldsmith or silver and can be redeemed at any time full guarantee. In further developments, people no longer use gold (directly) as a means of exchange. Instead, they make 'paper-proof' as a medium of exchange.


 Understanding MoneyIn economics, money is a medium of exchange that is generally accepted. The form can be any object that can be accepted by everyone in the community in the process of exchange of services or goods. According to modern economics, money is defined as generally accepted and is available as a means of payment to purchase goods, services, valuable material and debt payments. Some experts define money as a means of delaying payment. Since ancient times, human needs are met through the method of barter or exchange of goods.
 This concept underlies the creation of money. Here the exchange can occur between two people who are in need of goods with one another. Over time this method is not used anymore. One reason is because ambiguous one transaction with the value of the goods item itself. Suppose in area A scallop is very expensive commodity, while in area B, shellfish is an inexpensive product that when people from the area A offers shells to the people in the area B with a high expected value of barter, people from the area A will feel disappointed because things are not valued as high as in the place of origin.Therefore, not all items can be used as a medium of exchange because it must meet certain requirements. To simplify the transaction process is used money as a medium of exchange with nominal so that we can adjust the nominal amount of the desired item. The existence of the money supply option transactions simpler and easier compared to the barter system is more complicated, cumbersome and less suitable for use in the modern economic system.


Terms - terms of moneyThe requirements that must be met in order for the money received in the community are:
 1. Received in general (acceptability)
 2. Has a value that tends to be stable (stability of value)
 3. Lightweight and easy to carry (portability)
 4. Durable (durability)
 5. Quality tend same (uniformity)
 6. The amount is limited and not easily faked (scarcity)
 7. Easy to be divided without reducing the value (divisibility)
 



Types of money
The money that we use in everyday life can be classified based on the following criteria.
d. Based Regions / Areas Applicabilityc. Based on the valueb. Based Iembaga or Board Makera. Based Materials (Materials)
Consider the explanation of each:


When viewed from the material to make it, that kind of money consists of two kinds, namely coins and paper money.




1) The coins are money that is made from a kind of heavy metals and certain with certain levels anyway. Money that is made of metal in general have a small nominal value, which is made with special features to prevent counterfeiting. Coins in Indonesia at this time consisted of a nominal value of money ranging from Rp50.00; Rp100.00; Rp200,00; Rp500.00; and 1,000.00
2) Paper money is money fiduciary (trust money), because all the people accepting the money as a means of payment, although the intrinsic value is much smaller than its face value. So, the basic banknote is confidence in the government or bank guarantee on the paper money in circulation.
In addition to common belief, there are other reasons that drive to create paper money as a medium of exchange, namely:- Coin can not be used for very large amounts, while paper money is no difficulty,- The cost to make the coin is much more expensive than to make paper money,- Coins less cumbersome, difficult to be brought to a place far away in large numbers.
Paper money circulating in today's society ranging from fractions 1,000.00; Rp5.000,00; Rp10,000.00; Rp20.000,00; Rp50.000,00; and 100,000.00.
All paper money is printed by Peruri (Public Company Printing Money Republic of Indonesia) and its circulation is regulated by Bank Indonesia. Therefore, the paper money called bank notes.




Functions of money
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 (Image from kazegatana.wordpress.com)The function of money that friends may know Just as a medium of exchange, when in fact there is a lot of money function. There is the original function and derivative function. The original function of money is:1.Sebagai tool or medium exchange exchange, with money we all no need to bother to get / buy something. This method is definitely more so than disposable facilitate the exchange of goods by barter.2.Penakar / unit price or unit of account, the money value of a product either goods or services can be measured, is also used to determine the price of goods / services (price indicating device). As the tool unit of account, money plays a role to facilitate the exchange.3.Penyimpan value / wealth or store of value, money can be used to transfer purchasing power from the present to the future. For example, an entrepreneur who sells products at this time, then the proceeds can be stored to be used to produce products of tomorrow or the future.It is the 3 original function of money, then there are 4 function derivative, namely:1.Sebagai means of payment, we can pay for goods / services that we want to use the money.2.Sebagai debt payment instrument, we can take the goods / services that we want to do a deal debts and pay our debts with money.3. As a means of hoarders of wealth or transfer of wealth (capital), we could have kept a currency as a symbol of our wealth, and could also constitute money we havein the form of capital goods such as land, commodities, investment and others.4.Sebagai enhancing social status, of course, the more money we have we can be said to be a rich man, in other words we are rising status in the eyes of the public because of our wealth.
VALUE FOR MONEY
Value for money or money's purchasing power is the ability of money in exchange for goods or services, or exchanged for another.

Value for money can be divided into two, namely by origin and size.
a. Originally Based Judging from its origin,value for money consists of the nominal value and intrinsic value.1) The nominal value, a value based on the text contained in the money.2) intrinsic value, that value is based on the materials used to make money.
b. Judging from the sizeBased on the size, value for money consists of internal and external value value.1) internal value, the value of which is measured by the ability of money to be exchanged for a number of goods and services.2) external value, ie the value measured by the ability ofThe money to be exchanged with a number of foreign currency or foreign currency

30 currencies in the world1. Abbesinia - Dollar2. Afghanistan - Afgani3. South Africa - Rand4. Central Africa - Franc5. Albania - Lek6. Algeria - Dinar7. United States - Dollars8. Angola - Kwanza9. Argentina - Peso10. Australia - Dollar11. Austria - Shilling12. Bangladesh - Taka13. Netherlands - Gulden14. Belgium - Franc15. Bolivia - Boliviamus16. Brazil - Cruzeiro17. Brunei Darussalam - Dollar18. Bulgaria - Lev19. Chad - Franc20. Canada - Dollar21. Ceylon - Rupes22. Chile - Peso23. China - Yuan24. Ceko- Koruna25. Denmark - Krone26. Dominica - Peso27. El Salvador - Colon28. Ethiopia - Birr29. Ecuador - Sucrve30. Philippines - Peso