Global banking issues Assignment Example | Topics and Well Written Essays - 500 words - 1

Global banking issues - Assignment ExampleThe best example of employment system is that suppose there are two persons, one of them has a goat and the other has a cow and they both want the goods possessed by each other. In such condition the affair system is created so as to get into an agreement for the procedure of goods exchange. However dismantle if the goods are interchange successfully there would be a time when the goat and cow would die and hence it jackpot be stated that these goods are not adapted to maintain their initial encourage over the time. In such a scenario there was evolution of a new concept in the form of capital which served as exchange medium (Schwartz 361).This medium was accepted widely by all the traders as it was able to solve the problem that was associated with goods that deteriorated with time.One of the most important functions of money is that it can be considered to be social unit of account that facilitates a mechanism through which value can be placed on the operate and goods. This is simply because such a function is a standard unit in monetary price for value meter on services and goods. For instance when a person goes to a supermarket the monetary value of goods can be observed by the person through the price tags on the goods. There even exists monetary value on services such as when a person goes for a spa and gets the required service the person in return pays money to the concerned individual for the availed service. Thus unit of account as a function of money can be regarded as value measurement for services and goods.The supply of money can be considered as liquid instrument and total hackneyed assets at a particular time and this in turn in an economy of a plain is accepted as medium of exchange. The Federal Reserve System takes into control the supply of money in America. The supply of money comprises of three essential components such as the