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This comprehensive overview explores the facets of money, covering full-bodied and metal-backed currencies, including gold and silver. It delves into the complexities of fiat paper currency, its values, and the established trust in a nation’s credit. The discussion extends to exchange rates, inflation, and the rise in costs without improvement in quality. Additionally, we examine different market structures—money markets, capital markets, and the role of equity and debt securities. Discover how currencies interact in the foreign exchange market and the importance of credit ratings.
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MONEY ISSUES • FULL-BODIED CURRENCY • GOLD BACKED PAPER CURRENCY • SILVER BACKED PAPER CURRENCY • VALUE OF METAL IN COINS • FIAT PAPER CURRENCY AND COINS • FULL FAITH AND CREDIT OF COUNTRY • VALUE OF CURRENCY • ESTABLISHED IN MARKET PLACE • EXCHANGE RATES • INFLATION • RISE IN COSTS WITHOUT IMPROVEMENT IN QUALITY • EURO • COMMON CURRENCY FOR 12 EUROPEAN COUNTRIES • MONEY MARKET FUNDS • PLAYERS IN MONETARY SYSTEM
VOCABULARY • MONEY MARKETS—LESS THAN 1 YEAR • CAPITAL MARKETS—OVER 1 YEAR • PRIMARY MARKETS—NEW SECURITIES • SECONDARY MARKETS—STOCKS, BONDS, MORTGAGES • DEBT SECURITY MARKET—MONEY MARKET, BONDS, MORTGAGES • EQUITY SECURITIES MARKET—STOCKS • DERIVATIVES SECURITIES MARKET—PUBLIC OR PRIVATE ISSUE • FOREIGN EXCHANGE MARKET—FOREX, TRADE CURRENCIES • CREDIT RATING—APPLIES TO COMPANIES’ ABILITY TO PAY • CREDIT SCORE—INDIVIDUALS’ CREDIT HISTORY