And no it doesn’t come from daddy’s wallet.
I am talking the actual money that is in circulation. Do you understand where it comes from, how it is created, and what gives it value.
I have tried learning that, but each time I get more confused than before. I understand the concept of Fiat money, but I don’t get how a govt actually gives money its value. What’s keeping Canada from saying their $1 is now work $100.
Re: Do you understand where money comes from and what gives it value?
good query.
money in and of itself is just expensive paper.
it is given a certain value and it goes by that value.
the economic systems and societal impetus money has, those are thing real factors which drive the money related worries and their perpetual scares in the hearts and minds of all people.
money must be well spent and hard earned. to avoid begging someone else, money must be saved and secured and not misspent.
children must be taught the value of living with less and not wasting money.
elders can leave a legacy of their money based wealth - for greater goods through their acts of generous charitable kindness or endowments for the sake of helping and supporting indigent people or further the inquiry in sciences, education and health fields.
then, money will not go to waste and it will be properly spent.
no one will have to worry about its vicious cycle of earning and spending.
nobody will have to deal with its scarcity not choking abundance.
Re: Do you understand where money comes from and what gives it value?
This is a good question...wonder who can answer it? Who and what determines the actual value of the dollar?
Re: Do you understand where money comes from and what gives it value?
I will ask my teacher today , then i will tell you.
Re: Do you understand where money comes from and what gives it value?
I guess the answer to this question for and average person (including me) should be very simple yet very complicated because of their lack of knowledge regarding the related issues surrounding this topic (micro & macro economy, human psychology etc....). I am not sure though. Waiting for some answers :)
Re: Do you understand where money comes from and what gives it value?
I am waiting for the conspiracy theorists to come in. That's when things will become fun.
I am waiting for the conspiracy theorists to come in. That's when things will become fun.
I knew that was your intention of opening this topic or at least part of it. ;)
I am still learning..but I guess there is the "conspiracy theory" behind it.
Re: Do you understand where money comes from and what gives it value?
ayite Alhumdulilah i have boring but easy to understand (hopefully) answers to ur questions but too tired to boggle my head now so insha Allah i will post the answers in the morning
Truthfully Fiat paper money is actually worth nothing more than the paper it is on. However because the government says its worth the amount that is printed on it, you, I and everyone accepts that.
Now how government determines what the paper money is worth, it get complicated .
Here is story of a man who was making his own money and law could not do anything against him.
Although the United States Treasury Department has very strict and serious laws about the counterfeiting of currency, there is one law that is above them that they seem to recognize and that is the artists freedom of expression.
J.S.G. Boggs (born Steve Litzner) is most famous for his hand drawn, one-sided United States bills that he then exchanges for goods and services just like real money. His drawings show the hand of a master draftsman so much so that he has been arrested for his counterfeiting in England and Australia. Boggs was acquitted in both cases on the grounds that he was creating art and not forging or counterfeiting currency and trying to pass it off as such.
But Boggs’ creations are as elusive as his philosophy about the art he creates. He does not consider the drawn bank notes as money and they are commonly referred to as Boggs Notes, Boggs Bills, and Boggs Dollars. Boggs considers the art part of his work when he exchanges the bills, receives change, and receipt and goods. He then is willing to sell the receipt, change and goods as the art, not the original bill. If a collector wants a hand drawn Boggs Bill they will have to track down the lucky recipient themselves.
While Boggs art work could be considered hard to collect and esoteric he is taken seriously by the art world. The proof? His work is in the collections of the British Museum, the Art Institute of Chicago, the Museum of Modern Art, and the Smithsonian Institution.
Source
Someone already mentioned Micro and Macro economy. I think the stock market and the economy give it value. Many important financial decisions are depended on these two factors, an example would be gas/oil prices. Where it comes from? the government of a country makes it and gives it value as mentioned earlier based on how well the economy and the stock market is doing.
Re: Do you understand where money comes from and what gives it value?
My lil broter + sis don't.
My father spoiled them.
^ r u saying what I think ur saying...hmmm
Re: Do you understand where money comes from and what gives it value?
It grown on genetically modified banana trees. The research was done in Tel Aviv after extracting alien DNA from Roswell crash site. The settlers at Gaza strip are actually CIA employees and they take care of those banana trees. 
^ r u saying what I think ur saying...hmmm
I am not as smart as you think, So tell me what you think I am saying.