Where do you make money?

Where do you make money?

Money

You know the money ( in English: Money) as metal and paper currency carrying value, and be negotiable between the people, they are acceptable financial expenses means; therefore is the main unit of purchasing power, [1] [2] also known as financial intermediary exchangeable, help On the acquisition of assets , personal property that constitutes wealth of persons or part of their own property, [2] and money is the material used for the application of the trade; whether it is paper money, metal coins or any securities of legal value, Her in p Sales, purchase, and savings, such as: financial deposits in bank accounts. [3]

Money Making

People have long relied on a variety of means, including barter , to conduct their financial transactions, but this method has subsequently shown many problems; because of the effort and time spent, and the unequal values ​​of the materials being exchanged with each other; especially in traders who refuse to replace large items versus Small things, or replacing low-value items of the same high value, such as banana-to-meat trade, hence the need to make money, [4] both paper and metal.

The place of making paper money

Paper money is money made from special paper, and is printed in government printing presses of the countries. [5] The paper money industry relies on the use of a mixture of linen and cotton . This mixture is made of cotton paper. This industry begins with cotton, which is cooked in a huge container for about two hours of time, then cleans any impurities that remain attached to its ingredients; To be ready for kneading in a variety of mixtures; to become a unique paper, usable for paper money. [6]

After finishing the previous steps, insert the security threads, symbols and labels that distinguish them from the ordinary papers, protect them from counterfeiting , and then dry the sheets completely, through the use of special ovens, after which the machines begin printing banknotes to work; to check the size The paper is required and ready for use until it is finally printed; it is negotiable in many different financial transactions. [6]

Place of manufacture of coins

Coins are coins that are made of metal; so called this labeled, and make this money in places seek coins in government bodies; where officials for money in government inscriptions and special shapes currencies picks before minting, and uses the artist in charge of the coin industry usually models Made of clay ; to draw the inscriptions and pictures of them; but uses a plastic mold to support the clay material; because it is soft at first before drying, which prevents him from maintaining the graphic in the currency correctly. [5]

The metal lathe machine is used to design a miniature model of the coin after the completion of the coin form and the steel is used as a means of supporting the design of the base mold, which is exposed to the heat, so that it acquires sufficient hardness and is suitable to produce a copy of the mold, It uses a set of templates, and then prints the pictures, inscriptions and words, so that the currency is ready to apply the final stages of its work, before sending it to the Central Bank , so that it is distributed to commercial banks. [5]

The history of money

The history of money was one of the most important events that affected human economic life. It contributed to the recording of global economic development, especially after the use of the system of trade-offs, which was gradually deviated from the geographical spread of the transfer of goods between distant countries and regions; On the barter between traders from different countries, and this prompted traders to research and think in a new way; to promote trade between regions and countries. [7]

After thinking about possible ways to promote economic trade, the idea of ​​using silver and gold as coins was one of the most important tools of trade, part of the economic relations between societies and nations since ancient times, but because of the size of the coins and the difficulty of transferring them from the place In particular, when large sums were paid, a new, less expensive, and more valuable method was found to achieve the desired benefit from trade ; therefore, paper money was invented and became acceptable for circulation and legal use, just like coins. [7]

Note Bankers spread money paper in effect on the coins stored in bank lockers, so supervisors for these banks decided to issue coins and paper; to maintain profits, protect the banking vulnerability due to paper money, with a commitment to replace the coins , and the use of paper in the event of a request The holder of this money, and this led to the granting of legal considerations for paper currency. [7]

The second way is the commercial banks, which act as intermediaries between the central banks or the money issuing authority, individuals and companies in the society. Domestic or international; in economic transactions between States, both of which provided the ability to deposit and save public and private funds of individuals and companies; for investment or use as financial reserves if needed; T money trade efficiency and greater efficiency; it is fast, and the ability to achieve financial transactions are correct ways, with a high degree of safety, maintain the confidentiality of financial movements. [7]

Characteristics of money

Money is characterized by a set of characteristics, the most important of which are: [8]

a - Is a kind of global resource, usable in economic exchange: domestic, international.

b - It is the medium that expresses prices, and the values ​​of measurable objects.

c - Helps individuals get things they want, such as: food, clothing, goods, etc.

d - Constitute the money one of the main economic means, which provide appropriate support in many areas of the economy, such as: purchasing power.

References

1- ↑ "money" , Business Dictionary , Retrieved 3-1-2017. Edited.
2- ^ A b "Money" , of Oxford Dictionaries , Retrieved 3-1-2017. Edited.
3- ↑ "money" , Dictionary.com , Retrieved 3-1-2017. Edited.
4- ↑ Investopedia Staff (18-3-2016), "What Is Money?" , Investopedia , Retrieved 3-1-2017. Edited.
5- ^ A b v Encyclopedia of Arab World (1999), Global Arabic Encyclopedia (Second Edition), Saudi Arabia: Foundation work Encyclopedia Publishing and Distribution, page 494.495, 25. Adapted part.
6- ^ A b Summer Hope (15-4-2014), "money industry ..« Jarrod »" , Arab Media Network , briefed him on 01.03.2017. Acting.
7- ^ A b t w Mtanios Habib, "money" , Arabic Encyclopedia , briefed him on 03.01.2017. Acting.
8- ↑ Allan Meltzer, and Milton Friedman. (29-4-2016), "Money" , britannica , Retrieved 3-1-2017. Edited.

By Sanae Dwik