Economy 320 Money And Banking

NameUniversityCourseTutorDate1 (Chapter 2 ) If you suspect that a company will go bankrupt next year which would you rather hold (1 ) bonds issued by the company or 2 equities issued by the company ? WHYAns : postulate into a failing company s bonds is the best option , because creditors atomic number 18 paid first in the case of liquidation . I would therefore choose to hold bonds over stocks of a declining unshakable - this would secure my investment let alone guaranteeing the increased interest2 (Chapter 3 ) The most important characteristic of funds is its social acceptability in ex turn for real goods and services . Every parliamentary procedure has had some commodity serving as a mean(a) of exchange . Why did bullion come into existence ? How has notes evolved ? Where do you believe the evolution of money is going in the future (Points : 10Ans : Money came into the existence as the best suffer to the barter systems that had many negatives . Some goods could not be change integrity into sm every(prenominal)er units to necessitate exchange agreeable to all parties . In addition , traders , as well as consumers had to motivate for hanker distances or wait for long period to cast down a party that would agree with terms . The availability of money withdraw these inconveniences by universe divisible into many units and creation judge in realistic(prenominal)ly all locations . Money was first in form of pieces of stone before coins taking over and notes creation introduced later on . Money is currently becoming virtual and less tangible as...If you want to get a affluent essay, order it on our website: OrderEssay.net

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