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Essentials of Money, Credit and Banking

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  ESSENTIALS OF MONEY, CREDIT AND BANKING MIRANDA  MONEY IN THE NATION’S ECONOMY   Barter as a form of exchange is not only utterly inadequate but, moreover, crude and cumbersome to meet the needs of our modern economic life. For this reason, man on his road to development and progress introduced the use of a very important commodity purposely designed to eliminate the shortcomings that characterize every barter transaction, like the need for a double coincidence of demand and equality in value of the things entering the exchange transaction. CHAPTER 1  MONEY IN THE NATION’S ECONOMY   Money and its Evolution. The evolution of money in the life of man represents one of the most interesting and yet intriguing chapters in his cultural development. So important is money in his economic life that in the words of a well-known professor in finance, it deserves to be ranked among the most outstanding inventions in the entire history of mankind.  MONEY IN THE NATION’S ECONOMY   The Use of metals. The use of metals as money stems form a number of advantages. ã First, Metal, particularly gold, are virtually indestructible. ã Second, such metals can be melted and cast into certifiable weights. ã Third, metals are valuable in their of portability. ã Fourth, such metals are valuable in their own right. Copper, silver and gold coins can be melted down and used for industrial purposes. Compared to paper currencies which have no intrinsic value and, as such, become subject to value manipulation by governments, metallic money of known purity possess a purchasing power that cannot fall below the value of the metal itself.
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