Baby G
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The definition of money is what a society deems valuable. There is no value in paper money, gold, coins, etc. if people don't use it as their medium of exchange. Some countries use food or certain objects as their money, whatever is highly desirable. |
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blowme1371
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Whatever the public perceives it to be. There is no gold standard anymore so if people didn't believe in it, it would become worthless. |
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bundygil
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The value people and institutions put on it |
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Sheldon
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Not as long as people continue to trade it for goods and services. Money has value because we as a society give it value. It's value is determined by the market and the amount of it that exists.
Money does generally decrease in value over time a process known as inflation. Inflation is caused by a number of things. Governments printing excess money causes inflation, but so do normal market forces. In a growing economy there will almost always be some inflation, but reserve/central banks try to keep it low.
This is seperate from its value as paper, in fact in Germany between world wars it was cheaper to burn money than to buy fuel for a fire.....so the money was actually worth less than the paper it was printed on.
However, over time denominations of currency are phased out to ensure that the money is not worth less than what it is made of (otherwise it would cost the government money to print it instead of allow them to profit from it). In Australia, for example, we used to have 1c and 2c coins but they are now worth so little that they have been removed from circulation. Similarly we used to have $1 and $2 notes but these have been changed to coins to make them more cost effective (as well as conveniant).
So yes money's value decreases, but that doesn't mean it's worthless in the end. By the year 3000 everyone will just be a billionaire :) |
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Dani :):)
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nothing its just convient to get :):) |
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J N
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In a non-gold standard system, there is only a speculative value placed on it.
To answer your second question, you can depreciate the asset of the paper (for write-off purposes, oh the irony), but only within the schedule set by the IRS. I think it's 20% the first year with a graduated system after that. You'll have to consult the quickbooks faq for more info. |
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King Ebeneezer
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There might not be paper money soonner than you thinmk |
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Micheal M
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A dollar costs 4 cents to produce. This is its real value. |
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punk_tristan_911
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in 10 years the only people with paper money will be kids on pocket money day every1 else will use atm cards |
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sanju
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u can get this answer by watching the documentary
"***ZEITGEIST" |
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Trident
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Cash is just a promissory note from the national bank of your country to provide you with the value of the note (for most countries the reference is set against the value of gold). |
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