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The purchasing power of money

created by lazerus

(idea) by lazerus (7.1 y) (print)   ?   (I like it!) Tue Oct 17 2000 at 19:54:29

Money's true value is its puchasing power or what it will buy. Our purchasing power is represented by the amount and quality of goods and services our dollars buy. We work to earn money to us purchasing power. The paper used in printing currency is itself not worth much. Our "silver" coins (nickels, dimes, quarters,) do not contain silver any more. The precious metal content of our coins is worth less than the actual value of the coins. For example just a few cents' worth of metal is used on a quarter. Our money is worth something only because all of us accept it as a value that means the same thing to everbody. Two nickels equal one dime, four quaters equal $1, ten $10 bills equal $100 and so on. Money is a convenience. It is a small, light and easy to carry and store. The coins last a long time. Worn or torn money can eaily be changed at banks for new money.

printable version
chaos

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