The notion of money

Money (in English: money) is all things owned by an individual or group of individuals, including money, real estate, commercial materials, cars, furniture, and other property that is classified within the funds, [1] money is defined as money, whether in the form of coins or paper, or similar securities, such as bonds, where money is used to buy things or to carry out diversified investments. [2] of other definitions of money is the official and legal thing consisting of banknotes, coins, instruments and is the basic means of financial trading in accordance with the determination of the Governments of States; Each state of the world has its own money. [3] Money types divide the money into a group of types: [4] The money in terms of persistence: is the first type of money, divided into two categories: fixed money: Money that is not accepted for transfer or transfer from one place to another; unless it changes its original image; meaning if that money represents a property, it must be sold. In order to convert them to banknotes that can be transported and carried from one place to another, examples of fixed money are buildings and land. Movable money: Is the money that accepts the transfer and remains in its original image no matter how moved or changed its place, examples of which are coins, gold jewelry. Money in terms of dealing: is the second type of money, divided into two parts: optimum money: It is the money that has a similar market, no variation of the value of the individual, and is not monopolized by traders, and depends on use of scales of weight, such as: numbered, sales, and ports, examples of wheat and barley. Value money: It is the money that varies in individual values leading to the monopoly of his merchants, such as real estate. Money in terms of warranty: The third type of money is divided into two parts: money being used: money that may legitimately be used, such as real estate, cars and land. Non-money: money that is not allowed to be used, such as alcoholic beverages, because it is not money at all. Money jobs that the main use of money when all consumers of individuals is associated with its role in paying for services and goods, but there are many basic functions for money are: [5] Exchange broker (English: Medium of Exchange): The role of money in trade transactions, i.e., in the purchase and sale of products and services; Before relying on money, barter was the basic process for people to get their daily needs, such as switching flour with sugar, but at the moment money is the primary and principal broker of trade; people go To shops and shops they pay money to traders for their purchases, and traders accept this money as the accepted and principal means of trade. Calculation Unit (English: Unit of account): is to use money as the appropriate standard for measuring the value of goods and services purchased by individuals from markets, e.g. if the price per kilo of wheat is 5 dinars; In this case, the unit of calculation of the wheat value is understood by the buyers; why they are aware of the nature of the money that contributed to the allocation of the price of wheat, but if the trader asks for a kilo of sugar for a kilo of wheat then there would be confusion for consumers, because they didn't understand this unit of arithmetic for not being traded in advance. In the market. Save Value (English: Store of Value): is the ability of the money to maintain its value; that is, the value of money does not change over time, for example if the amount of 100 dinars is retained in a Treasury or bank account, its value will remain constant for very long months and will not be subject to any changes in value. The importance of money has emerged in human life, as a result of the diverse needs of individuals; whenever one is obtained, the more the goal human to look for others, these main needs are the need for food, drink, lodging and other, and with the passage of time has shown the need for money to keep up with human needs, especially after consumption needs have become more than productive capacity., and the dependence of everyone on what they produce is not only, but needs to be consumed by others, which has enhanced the role of money as contributes to the convergence of the needs of individuals associated with the expansion of trade, which is dependent on a swap economy that has contributed to the distribution of labour, support for ownership of productive means and other economic activities. [6] Summarize the importance of money in the economic sector according to the following points: [6] money is the easiest way to exchange goods; it contributes to the expansion of the interactive range between individuals and nations. Money plays a productive role in society; It helps to increase private production in the economy. The money is associated with all parts and components of the economic system, because it contributes to the creation of conditions for the realization of the special needs of individuals, whether necessary or unnecessary. Money affects the rate of economic growth, due to fluctuations and changes in purchasing power. The money contributes to the strengthening of economic relations between individuals, by relying on its influential role. The causes of the deterioration in the value of money are suffering from a deterioration in its value, because of the impact of inflation on the private economic sectors of many States, and in a variety of reasons that illustrate this: [6] The profits have fallen very dramatically. The capacity to exploit private energy in production has deteriorated. Reduction in the exchange rate of the currency of States, as opposed to the increase in the issuance of bank notes, known as Penknut (English: bank-note). High import rate, declining export ratio, low dependence on savings, for business development. The negative impact of the external debt of States and the high interest rate.