Rus Articles Journal

Evergreen subject. What is money - as a universal equivalent?

Money are a universal equivalent, a criterion of cost something. Goods which are the measuring instrument of other services or products. It is important attribute in market economy and in human life.

Davny - long ago in the market there were goods which began to be in the greatest demand. It was the most favorable and allowed to make any exchanges. Other economic exchanges did not bring big benefit and had no such universality. Depending on the people and conditions of their production, acted as the general equivalent: grain, sugar, cocoa, rice, furs, cattle and other goods. But one animal it is impossible to divide into parts, and cocoa was necessary not for all. Therefore emergence of the general valuable carrier became inevitability.

The first money it is possible to call - precious metals: silver and gold. Why precious metals? Because, they were not exposed to corrosion, perfectly held a form, were ideally suited to mint coins. Besides, their cost was determined by their actual price by coin weight. They were accepted in all countries and therefore they were universal. Long time money were exchange goods and on combination of circumstances - became a universal equivalent.

Silver coins are primogenitors of notes which modern people got used to see. But over time extraction of precious metals became too expensive business therefore people came to understanding that the exchange goods can be made of cheaper material. Of course, at their production certain conditions had to be met. Money became the greatest invention on the earth and in world economy there was a revolution. Money is a uniform information carrier. In itself they are nothing as it was earlier. The cattle, for example, could be changed or eaten. And here money is just the securities equivalent to the determined cost now. That is not their actual cost, but idea of people of this cost.

With their emergence, division of labor became possible. It formed a basis for development of society. Money turnover is where there is a movement of goods, and agriculture where there are people and though some activity prospers. From what place borrow money in a financial system, stability of separately taken country, its prosperity or on the contrary extinction depends. All life of mankind is connected with money. From the birth to the death. It is the universal carrier of desires of all inhabitants of the earth. These valuable pieces of paper are at the head of any conflict - from interpersonal to international. Any ideological community has no such power over the person as money. It is that equivalent which is clear only to the person. By means of it it is possible to agree with anyone. Money strengthens in the person what in him is actually. Check its culture, education, ability to cope with the power and show true motives of social behavior. Money defines that is costed by the person.