A hundred-dollar bill uses the same paper that is used on the one dollar bill but one has more worth than the other. They are both made of paper but paper is also something we can find at home or in many places around the world so what makes paper money so valuable? the value they hold is due to the fact that they are printed by the government and are designated as official currency, while other pieces of paper are not. It is definitely not materialistic but it is what makes them legal.Now, what makes the one dollar bill less valuable than the 100 dollar bill is how many of them are in circulation. While there are many one dollar bills, there are few hundred dollar bills which makes them more valuable.
Throughout history there have been many different systems active in the economy. At first, everything started with a barter system but then they started noticing all the defects in these kinds of trade and decided to change their methods of trading. The flaws they started noticing were that there was first of all that people’s requirements needed to coincide with both opinions and what both parties considered valuable as individuals. Secondly, there was no common measure of value of things making trades unstable without a basis of worth, thirdly, not all goods could be divided or made smaller so if you only had a large cow to trade and you wanted something small, you could not divide the living cow. Lastly, before the development of the technology we have now, goods could not me transported easily especially when large, making a much more difficult trade. Because of this we started moving to a different type of currency, in 110 BC an official currency was minted in thousand 250 AD gold plated Florence and was introduced at first to be implemented in europe but then1680 to 1980 paper currency gained widespread.
Before, most currencies, including the US dollar, were directly proportional to the amount of gold or silver reserves that the government had, that being the factor that established the amount circling and its value. But after the US decided to stop using this type of system in 1971,many believe the value of the dollar now counts on the U.S’s army, value, production and other factors that make it a nation. Due to this, the dollar then became what is known as fiat money, meaning not linked to any external resource but instead it means it relies on government policy to decide how much currency to print and other parameters. In the United States neither the Executive, the Legislative, or the Judicial branches of the government are the ones in charge of printing the money because it is a whole independent system that is in charge of monetary policies. This independent branch is called the Federal Reserve System, also called the Fed. It is made up of 12 regional banks in major cities around the United states and that allows it to have targeted control over the country, voicing major opinions. In this system there is a Board of governors and these are appointed by the president and also later confirmed by the Senate which reports to Congress. The money that is produced as the profits of the reserves go straight to the US Treasury. The reason that a whole system was set in place to make this a whole independent company is to keep the Fed from being influenced by politics and other branches. This keeps it not only separate but under no control of one of the branches of the government.
Nowadays, with time people have also started to notice the small flaws in the systems of using banks as the middleman when transferring money. These flaws may include identity theft which leads to people stealing money, problems when rastering the money, having limits in how much to spend, transactions being slow and may other reasons Because of this people are starting to consider the transition to a new era of money with the leading idea being crypto currency but many people don't understand the concept yet even as it is growing in popularity. Should there be a new transition to a system not involving banks or should we stick to the system that has worked in the past and people mostly understand?
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