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On July 27, Japanese Prime Minister Shigeru Ishiba said in an interview with NHK that he plans to stay in office despite growing calls within the ruling party for him to resign after last weeks election defeat. "I will devote myself to the future of the people and the country," he said. He added that he must take responsibility for implementing the recently announced US-Japan trade agreement. Ishiba will speak at a Liberal Democratic Party meeting on Monday. LDP members have been calling for someone to be held accountable for the results of the July 20 Senate election. Former Foreign Minister Toshimitsu Motegi called on the LDP to change its leader on his YouTube channel over the weekend. Several Japanese media reported last week that Ishiba planned to resign, but the latter later denied the news. When NHK asked him if he had wavered in his decision to continue to govern, Ishiba replied "no".Russian Defense Ministry: Russian troops have attacked Ukrainian remote drone control stations. The deployment locations of the Ukrainian Armed Forces in 146 regions have been attacked.On July 27, US President Trump posted a picture on his "real social media" showing former US President Obama driving the white Ford Mustang SUV that former US football star OJ Simpson rode when he fled in the "wife murder case" in 1994, while Trump and Vice President Vance were driving behind to catch up. Vances image was also modified and came from the previously popular "Fat Vance" emoticon package.On July 27, Russian Presidential Press Secretary Dmitry Peskov told reporters that Russian-Ukrainian relations after the special military operation are currently an overly theoretical issue, and the tasks of the special military operation must be completed first. Peskov said that before determining the principles of future interaction between Moscow and Kiev, it is necessary to confirm that the tasks facing the special military operation in the direction of Ukraine have been completed. He said: "First of all, we still have to solve the problem. We need to confirm that the tasks facing the special military operation have been completed." Peskov added that Russia prefers to achieve peace with Ukraine through political and diplomatic means. However, Kiev and its Western allies have rejected all proposals for peace talks, so the special military operation continues.According to Russian media: Kremlin spokesman Peskov said that Russia prefers to resolve the Ukrainian conflict through political and diplomatic means, but Kiev and the West rejected this approach.

What Exactly Is Money?

Drake Hampton

Mar 25, 2022 14:29

Money is an economic unit that serves as a universally recognized means of exchange in an economy for transactional purposes. Money serves the purpose of lowering transaction costs, namely the double coincidence of desires. Money starts as a commodity, with the physical properties necessary for market players to accept it as a means of trade. Money may take the form of market-determined legal tender or fiat moneys, money substitutes and fiduciary media, or electronic cryptocurrencies.

 

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Recognize Money 

Currency is a term that is frequently used to refer to money. Each government has its own money system economically. Cryptocurrencies are also being created for use in global finance and international exchange.

 

Money is a highly liquid asset that is used to settle transactions. It operates on the basis of widespread acceptance of its worth inside a governmental economy and on a global scale via foreign exchange. Currency's present worth is not always determined by the materials used to create the note or coin. Rather than that, value is generated from the willingness to agree to and rely on a shown value in future transactions. This is the basic role of money: to serve as a universally recognized medium of exchange that individuals and global economies wish to hold and are ready to accept as payment for current or future transactions.

 

Economic money systems began to evolve in order to serve as a medium of trade. Money as a medium of exchange offers a centralized means of exchange for buying and selling in a market. This was first intended to take the role of bartering. Monetary currency contributes to the development of a mechanism for resolving the double coincidence of desires. The double coincidence of desires is a pervasive problem in a barter system, because each party must possess something the other party desires in order to trade. When all parties agree on and accept a monetary currency, this difficulty is avoided.

 

Currency should be fungible, durable, portable, recognizable, and stable in order to be used as money. These features ensure that the advantage of lowering or eliminating the transaction cost associated with the double coincidence of desires is not offset by other sorts of transaction costs connected with that particular item.

Fungible

The units of the good should be of reasonably consistent quality in order to be interchangeable. If various units of the good have varying characteristics, its value in future transactions may be unpredictable or inconsistent. Attempting to utilize a non-fungible item as money incurs transaction costs associated with the process of individually appraising each unit of the commodity prior to a trade.

Durable

The physical characteristics of the good should be sufficiently durable to ensure that it retains its use in subsequent exchanges and may be reused several times. A perishable item or one that degrades rapidly throughout exchanges will be less valuable in subsequent deals. Attempting to utilize an impermanent good as money runs counter to money's fundamentally future-oriented use-value.

Portable

It should be divided into tiny quantities such that people value the item's original purpose highly enough that a useful quantity of the good can be carried or transferred conveniently. An indivisible good, an immobile item, or a good with a low initial usage value might cause complications. Attempting to utilize an immobile or indivisible good as money may result in transaction costs associated with either physically carrying large amounts of the low-value product or defining practical, transferable ownership of an immobile or indivisible object.

Recognizable

The users should be able to simply verify the legitimacy and amount of the product in order to agree on the conditions of an exchange. Attempting to utilize an unrecognizable good as money incurs transaction costs associated with all parties to an exchange agreeing on the legitimacy and amount of the commodities.

Stable

The relative value that individuals place on an item in relation to the other things for which they are prepared to trade should remain roughly constant or increase over time. A good whose value fluctuates significantly over time or persistently depreciates over time is less acceptable. Attempting to use a non-stable good as money entails transaction costs associated with repeatedly revaluing the good in subsequent transactions, as well as the risk that the exchange value of the good will fall below its other direct use value or become unusable altogether, at which point it will cease to circulate as money.

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