3. Money, foreing exchange and finance

1. How are money and currency defined?

Money: is a set of assets that is generally accepted as a means of collection and payment to carry out transactions.

Currency: Is a measure of value and a means of payment issued by a Central Bank and is an accepted currency in a country.

2. What are the differences between currency and money?

Money is a medium that can be exchanged for goods and services, currency is any form of money that is publicly circulated. Money doesn't change or evolve over time and currency does evolve over time.

3. What are their most important characteristics?

Among its main characteristics is that they are Durable, Divisible, Portable, Limited in quantity and fungible.

4. What is a Fiat currency?

It’s money created solely by the governments of each country, for example Banxico, who are the only ones empowered to issue money in our nation.

5. What are its characteristics?

• It's money that exists at the disposal of a government.

• currency not backed by gold or silver.

• All Fiat currency have been devalued to zero.

6. What is money and currency used for?Money is used as a means of payment to buy and sell goods and services. Currency it’s the measure of the value of a country.

7. What does “store of value” refer to? It refers to an asset that has a stable real value in the market, avoiding strong fluctuations over time.

8. What was the currency used in the past?

In the past, gold and silver were used as currency.

9. What is the most beautiful way of money?

It's gold, since it has lasted over time, there is nothing similar to gold, it is divisible, permanent and a repository of value.

10. What is a “solving system”?

It's a system to maintain control over the production of money.

11. What happens when governments expand the currency supplies?

Prices rise to absorb excess currency. The exchange currencies buy less and less, the value of the currency falls and inflation occurs.

12. What is barter?

Barter is the exchange of goods or services between two or more people in exchange for other goods or services without the need for any type of money to be involved.

13. What is Quantity of Easy?

It's the currency creation.

14. What is the tendency of QEs around the world?

The tendecy refers to governments increasing the amount of exchange currency available in the market to reduce its value and with this help to overcome economic crises.

Gold, due to its characteristics such as its malleability, permanence, divisibility, the possibility of standardizing it and repository of value, turned out to be always the best merchandise and will always be ascending in a fiat currency system, which needs a continuous exponential creation of banknotes to survive. A cause of money, governments and central banks reach into everyone's pockets, rob us of purchasing power and spend it before anyone else and lose more value, I agree with John Williams when he mentions that governments don’t like money because they don’t benefit from gold as they do from fiat currency and as long as we continue to have corrupt governments, inflation will never stop.