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Uploaded by on Mar 25, 2010

http://www.lendinguniverse.com/borrowersmobilehomeloan.asp mobile home financing with bad credit The historical origin of a particular thing such as money may lie in its intrinsic usefulness. But once it is established in use as money, its acceptability comes to depend simply on everyone's belief that everyone else will accept it. Long before the advent of paper money, there were many cases of societies with money which no one wanted for anything except to use in exchanges. The stones of the Yap islanders serve no ornamental or any other purpose. Some of them are too large to move, but everyone knows who owns them. Indeed, one of them retained its value and was still used after it had fallen off a cliff into the sea. There are all sorts of examples of useless monies. The acceptability of money does not rest on its usefulness, but rather on confidence in its continued acceptability. Money is as money does. Many people think that the dollar is valuable because of its now somewhat tenuous connection with gold. But ask yourself what would happen to the value of gold if the U.S. Treasury refused to give $35 for every ounce of gold offered to it. Does gold impart value to paper dollars-or do the dollars impart value to gold? There are three major types of money used in the United States today-coins, paper money, and checking deposits. Until about 300 years ago metal coins were the only kind of money in use. But in the United States, and almost everywhere else today, coins are only small change. In the U.S. in 1970 there were $6 billion worth of coins in use, compared with $52 billion worth of paper money in circulation and bank checking accounts amounting to $163 billion.
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