2011年10月9日星期日

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Let's suppose the government suddenly print out a huge amount of money, and then give every
person a certain amount of that money. For example, A sells goods in the market.
Banks will offer other financial services to make additional profit, services provided usually include:* Taking
deposits from their customers and issuing checking and savings accounts to individuals and businesses* Loans
to individuals and businesses* Home loan* Cashing cheques* Mutual Funds* Signature Guarantees* Facilitating money transactions
such as wire transfers and cashiers checks* Issuing credit cards, ATM cards, and debit cards*
Selling insurance products or investment products* Stock broking* Storing valuables, particularly in a safe deposit
box* Cashing and distributing bank rolls* Consumer & commercial financial advisory services* Pension & retirement
planningGeorge C. Therefore, I try to understand and analysis the whole event in a simplified
way, and prepare to express my idea in laymen text.Let's start thinking from the ground
upIn the society, reasonably, trades among people are negotiated by the participants as a fair
exchange of goods and services. The basic services provided by a bank include receiving deposits
of money, lending money and processing transactions. Banks are in business to make a profit.
Therefore, money appeared. In other words, it is an IOU or a credit for the
chaussures puma seller and a debt for the buyer. What would people do with that extra money?
Some people will use that to pay the debt, some will save the money up,
and some will spend that. But I do really concern about the current financial crisis
and the economy like the other people. I want to see the complete picture. It
gives people a flexible way in trading.As money is a credit that is widely accepted
as a medium of exchange, therefore, we need a central place to have the control
on money, such as to standardize the appearance, to control the amount of money supply
to the market, etc. Every fee you pay to your bank enables them to reinvest
in themselves, giving them more money to loan to the others. I am not an
economist. Then you can use this to exchange for goods and services.As you can see
the importance of money, immediately, maybe the next question you will ask is: Why not
print more money? Will our country be wealthier in that way? This is a good
question. The responsibility of the government or the Federal Reserve is to keep the supply
of money in a reasonable balance with the needs of producers and the availability of
tn requin goods and services. The IOU is the money. A bank accepts deposits from customers like
you and in turn makes loans based on those deposits. You can imagine that this
is a very complicated work and required a wide range of knowledge in the economy
and finance area.Next, let's think about the bank What is bank? A bank is a
business that provides financial services, usually for profit. Finally, the supply and demand will back
to the point of equilibrium again. What is money? It is a recognized medium of
exchange, agreed by all the participants. With that IOU, A can buy goods back from
B or other parties with the equal value. When the maximum capacity of production is
arrived, then the price of the notebook will increase unavoidably.So, similar to all other goods
and services, print more money will only cause the raise of prices, which is inflation.
However, there are many limitations to increase the productivity, such as the increase of costs
of labors, materials and transportation, etc. This is the government, or the Federal Reserve. Therefore,
money is just a medium of exchange, it is a tool. It should be explained
by an example. On opposite, if Dell wants to keep the price unchanged, then they
need to manufacture more notebooks. However, it is not easy to match the same values
of different goods and services every time. Let's assume some people are going to buy
a notebook from Dell. You work hard and get paid with an IOU worth the
amount $1000. Once again, money is credit. Making loans helps banks make money. If the
supply of notebook remains unchanged, but the demand suddenly increased, then obviously Dell will raise
the price accordingly. When B comes to buy the goods from A, B gives an
IOU to A as an exchange. Every dollar of credit is matched by an equal
amount of debt. Their profit generally comes from the difference in interest paid to depositors
and the interest earned on loans. I want to understand the current situation. What is
going on to the global financial market? This probably is the question being asked most
frequently in the mean time. Having a central control is very important, because this can
enable us to measure the value of a good or service against another, based on
what each sells for in the market.How many bottles of beer are equivalent in value
to a pair of sport shoes can only be determined in the market place. ([http://www.finance-database.com]).

basket nike air max tn clear hommes neuf france 2010
basket nike air max tn clear hommes neuf france 2010

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