What Would Happen If All the World's Money.pptx

7/28/2019 What Would Happen If All the World's Money.pptx

1/10

Money is anything that is generally accepted

as payment for goods and services and repayment of

debts.

The main uses of money are:

1. as a medium of exchange;

2. as a unit of account; and3. as a store of value

What is money?


2/10


3/10

Everyone Might Feel

ConfusedAhsanwe would experience a

lot of things that are

horrible even to think of,especially in food,clothes, or shelter.

Money is a kind ofstandard that people

make for a better life, soif it were not for money,people would lose thestandard and feelconfused.


4/10

The whole financial system aroundthe world couldn't exist anymore.

There would be no banks.

Many people would find they wereunemployed.

Plenty of Unexpected andTerrible Things Would

OccurAhsan


5/10

If we look on the bright side, the disappearance ofall money might bring peace and charm to theworld.

Maybe there would be less war and fighting over

money and power. Most people would have to be producers of goods

instead of just being consumers as has happened inthe past. Life wouldn't be as complicated as it is

today in terms of money.

It Might Bring Peace and

Charm to the WorldAhsan


6/10

Money is very important in the world; nocountry can exist without it. If itdisappeared, there would be bigconsequences, and this would be a goodopportunity to think about the consistencies

of each country.There would be no exports and imports and

no border between countries.

There Would Be a Big

CrisisMohsin


7/10

Mohsin


8/10

1. Matrix Problem, leading to high cost of transaction

The barter system essentially needs a matrix where you

have to maintain exchange rate for each pair ofproducts. Now, think what will happen if we extendthis to one thousand products?

2. Multiple grades.

Most commodities have multiple grades (tomatoes canbe rotten, ripe, or green, and can be sourced frommultiple origins, can be organic etc). Signing eachcommodity with the particular grade is very expensive.

3. Verification of authenticity. Currency issuingauthorities have made it relatively easy to detectcounterfeit currency. But, imagine you are exchangingmilk for tomatoes. How do you know that the tomatoesall belong to quality x and the counterparty knows that

the milk is not alternated?Mohsin

Mohsin


9/10

4. Things get spoiled, and hence savingsbecome impossible.

A lot of times, you don't want to

exchange a product for another product.You just want a promise to exchange forthe product at a future time.

5. Banks will die. Since savings areimpossible and it is not practical to storeanything other than currency

Wasim


10/10

Money is NOT some special invented item,it is merely an abstract of value that humanshave put into a reality.

alternative of money does not exist yet. Thebarter system was used in the ancient times

but in 21st century it wont work out.

ConclusionWasim

Documents

What Would Happen If All the World's Money.pptx