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Barter trade system
At the beginning, there was no money. People engaged in barter, the exchange of merchandise for merchandise, without value equivalence. For example, a person catching more fish than the necessary for himself/herself and his group would exchange his/her excess fish for the surplus f another person who, for instance, had planted and harvested more grain than he would need. This kind of trade prevailed at the beginning of civilization and may be found today among people of primitive economies, in regions where difficult access makes money scarce and even in special situations, where people barter items without regard for their equivalence in value.
Goods used in barter are generally in their natural state that is to say they are in line with the environment conditions and activities developed by the group corresponding to elementary needs of the members of the group. This exchange however, is not free from difficulties since there isn’t a common measure of value among the items bartered.
The commodity money
Some items for their utilities were more sought than others are. They were accepted by all and assumed the role of currency. These commodities circulated as an element of exchange for other products and used to assess their value. These items were hence referred to commodity money. Examples of commodity money are; cattle which was one of the mostly used because it had advantages of moving for itself, reproducing and rendering services although there was the risk of diseases and death. Another commodity money used was salt although it was difficult to get mainly in the interior parts of the continents. Salt was also used as a preservative for food.
Later, commodities became inconvenient for commercial trades due to changes in their value hence metal became the main standard of value. It was exchanged under different forms such as ingots and still. The metal traded required weight assessment and examination of its purity at each transaction. Metal money however gained definite form and weight receiving a mark indicating its value.
Ancient coins
In the 7th century B.C. the first coins resembling current ones appeared. They were small metal pieces with fixed weight and value bearing an official seal that is the mark of who has minted them. Coins reflect the mentality of people and their time. The first historic character to have his image registered in a coin was Alexander the Great of Macedonia.
Gold, Silver and Copper
The first metals used in coinage were gold and silver. Employment of these metals was as a result of their beauty, immunity to corrosion, economic value and for old religious habits. Milting of gold and silver was common for many centuries and pieces were guaranteed by their intrinsic value that is by the trade value of the metal used in their production. A coin made of twenty grams of gold was exchanged for goods of the same value. Most of the economies minted their highly valued coins in gold. Silver and copper were used for lesser value coins.
With the appearance of paper money, minting of coins was restricted to lower values necessary as change.
Paper money
In the middle ages, keeping of values with goldsmiths, people trading with gold and silver items was common. The goldsmith as guaranty delivered receipt. With time, these receipts came to be used to make payments circulating from hand to hand giving origin to paper money.
Currently, all economies have their central banks in charge of issuing coins and notes.
Cheques
As coins and notes ceased to be convertible into precious metal, money became more dematerialized and assumed abstract forms. One of these forms is the cheque that for its simplicity of use and security offered is being adopted by an increasing number of people in their daily operations. A cheque is a document by which one orders payment of a certain amount to its bearer or to a person mentioned in it. It aims mainly at transactions with bank deposits.
Electronic or Digital.
Digital currency gained momentum before the 2000 technology bubble. There are many new digital currencies being developed and generally small user-bases.
Dullayo answered the question on April 21, 2018 at 16:16
- In respect to demand for money, discuss the following motives of holding money: a. Transaction motive b.Asset motive c. Speculative motive d.Portfolio motive(Solved)
In respect to demand for money, discuss the following motives of holding money:
a. Transaction motive
b.Asset motive
c. Speculative motive
d.Portfolio motive
Date posted: April 21, 2018. Answers (1)
- State and explain ten reasons that causes most developing countries to find themselves excessively borrowing resulting to a public debt crisis?(Solved)
State and explain ten reasons that causes most developing countries to find themselves excessively borrowing resulting to a public debt crisis?
Date posted: April 17, 2018. Answers (1)
- Critically explain Malthusian theory of population(Solved)
Critically explain Malthusian theory of population.
Date posted: April 16, 2018. Answers (1)
- Define and state the significance of Pareto efficiency
(Solved)
Define and state the significance of Pareto efficiency
Date posted: April 7, 2018. Answers (1)
- Differentiate between positive and normative economics
(Solved)
Differentiate between positive and normative economics
Date posted: April 6, 2018. Answers (1)
- What is the difference between impact and incidence?(Solved)
What is the difference between impact and incidence?
Date posted: April 5, 2018. Answers (1)
- What are the reasons for studying economics of education?(Solved)
What are the reasons for studying economics of education?
Date posted: April 4, 2018. Answers (1)
- Investment planning proposal(Solved)
Investment Planning Proposal
Imagine you are meeting with friends to discuss the importance of investments as part of a retirement plan.
Read the following summaries of the financial situation and goals of two of your friends:
Kathy
Kathy is a 28-year-old, single mother of twin boys. She has been working as a public relations media specialist for three years, having worked at the same company where she started out answering the phones. She has her B.A. in Communications and a student loan of USD20,000 she has not yet begun to pay off. Her job pays USD70,000 a year. She receive no financial support from the father of her twins. Her costs include paying for childcare, credit cards, and a mortgage. She is able to set aside between USD200-325 a month in a savings account. Her financial goals are to pay off the remaining USD1,000 of her credit card debt, and to begin contributing to a retirement plan. Her employer offers a 401k with a 3% match, and she is not yet enrolled in that plan.
Jackson
Jackson is a recently graduated 44-year-old, single man. He earned his B.S. in Criminal Justice and just recently started a job at the local police department earning USD45,000 a year. Jackson pays child support for one child from a previous marriage. His student loans total USD30,000, and he has no other debt at this time. He expects to have $200 a month to contribute toward his goals of owning a home and having a more secure retirement.
Choose one friend and write an APA-formatted, 3- to 4-page proposal advising a friend about investing for the future. The text of your proposal should be a minimum of 700 words. You may add any graphics or illustrations that support your proposal.
Address the following in your proposal:
Why is investment planning important?
How would you suggest your friend start retirement planning? What steps should he/she take to start?
What investment strategy would you suggest? Why? (Note: Your strategy should explain how money could be invested in stocks, bonds, mutual funds or a mix of all.)
Of what risks and rewards of investing should your friend be aware?
How could your friend minimize the risks associated with investing risk?
Provide two to three resources you would offer to your friend to continue learning more about investments and retirement planning and discuss how these can help.
Your paper must cite two to three academic resources (only one source can be your class textbook).
Submit your proposal.
Date posted: April 4, 2018. Answers (1)
- a)In each of the following three situations, use the binomial, poisson, or normal distribution depending on which is the most appropriate.
In each case,...(Solved)
In each of the following three situations, use the binomial, poisson, or normal distribution depending on which is the most appropriate.
In each case, explain why you selected the distribution and draw attention to any feature which supports or casts doubt on the choice of distribution.
Situation 1:
The lifetimes of a certain type of electrical components are distributed with a mean of 800 hours and standard deviation of 160 hours.
Required:
Identify situation 1. (2 marks)
If the manufacturer replaces all components that fail before the guaranteed minimum life time of 600 hours, what percentage of the components have to be replaced?
(3 marks)
If the manufacturer wishes to replace only 1% of the components that have the shortest life, what value should be used as the guaranteed lifetime? (3 marks)
What is the probability that the mean lifetime of a sample of 25 of these electrical components exceeds 850 hours? (2 marks)
Date posted: April 2, 2018. Answers (1)
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a)Explain briefly the application of calculus to economic models, especially in the context of maximizing contribution and minimizing costs.
b)Company A...(Solved)
a)Explain briefly the application of calculus to economic models, especially in the context of maximizing contribution and minimizing costs.
b)company A sells all its output to company B for Sh. 200 per unit. The cost of the sales per week in company A are given by the function C = 2q2 + 40q + 80 where q is the value of weekly sales. Company B uses the output of company A to manufacture a product whose demand is dependent on the sale price. The revenue per week of company B is given by the function:
R = 1000q – 16q2 and the cost per week of company B excluding cost of the products bought from company A are given by the function.
C = 2q2 + 80q + 400
Company A can restrict the weekly supply of its product to company B, but cannot raise the unit price above Sh. 200. The two companies are considering whether to merge together into a single company.
Required:
i)At what weekly sales would company A maximize its profits? What would be the profit or loss of company B if company A were able to supply a profit maximizing quantity of its product each week?
ii)At what level of weekly sales would company B maximize its profits?
iii)If the two companies merge into one, what would be the profit maximizing output per week and what would be the weekly profit?
Date posted: April 2, 2018. Answers (1)
- Describe the limitations of the CVP (Cost, Volume and Profit) Analysis(Solved)
Describe the limitations of the CVP (Cost, Volume and Profit) Analysis.
Date posted: April 1, 2018. Answers (1)
- Describe the competitive strategy by Michael Porter(Solved)
Describe the competitive strategy by Michael Porter.
Date posted: April 1, 2018. Answers (1)
- Describe the BCG matrix as used as a corporate business portfolio analysis tool(Solved)
Describe the BCG matrix as used as a corporate business portfolio analysis tool.
Date posted: April 1, 2018. Answers (1)
- Give the factors which determines the gains from international trade(Solved)
Give the factors which determines the gains from international trade.
Date posted: April 1, 2018. Answers (1)
- Describe the various gains from trade(Solved)
Describe the various gains from trade.
Date posted: April 1, 2018. Answers (1)
- Case study analysis of communication strategysummarize the communication strategy of your chosen organization, b) analyze the communication strategy of your chosen organization, and c) explain...(Solved)
In this assignment, you will need to a) summarize the communication strategy of your chosen organization, b) analyze the communication strategy of your chosen organization, and c) explain how you would integrate the communication strategy into the current organization where you work or into a former organization where you have worked.
A. Summarize the Communication Strategy
Locate an article that discusses the communication strategies used by your chosen organization. After reading your chosen article, you may find the exercise below to be helpful in developing a summary paragraph. Identify the author(s) of your chosen article, and complete the following exercise:
[Insert author’s name here] discusses how innovative communication processes have helped [insert name of the organization here] resolve [insert issue here].
The top reason [insert author’s name here] holds that position is __________.
A second reason [insert author’s name here] holds that position is __________.
A third reason [insert author’s name here] holds that position is __________.
After filling in the blanks, you should have a list of the positions and claims made by the authors about your chosen organization. Shape your notes into a summary paragraph. (Do not simply include the list that you completed in the exercise above.)
Remember that the summary paragraph is where you will present information from the source. You will provide your analysis and interpretation in the following section of the paper.
B. Analyze the Communication Strategy
Be sure to include how the communication strategy impacts the organization on multiple levels. Feel free to use the four levels of sales, services, value chain, and continuous improvement as a model, which was discussed in the case study on the Dell Computer Corporation in the Unit VI Lesson. (Note: Your categories may be different.)
In the analysis portion of the assignment, discuss any problems (or potential problems) with the communications in your chosen organization, and provide potential solutions based on your research. Include ways that effective management could help to provide a solution.
C. Explain Integration Techniques
Finally, explain how this communication strategy could be integrated into your current or former workplace.
You will need to reference at least two academic sources.
Use the standard five-paragraph format (introduction/body/conclusion). APA format should be used. The assignment should be a minimum of three pages in length. Content, organization, and grammar/mechanics will be evaluated.
Date posted: March 31, 2018. Answers (1)
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a)Explain the following terms as used in network analysis:
i)Backward pass;
ii)Crashing; ...(Solved)
a)Explain the following terms as used in network analysis:
i)Backward pass;
ii)crashing;
iii)Slack;
iv)Earliest start times;
v)Critical-path activities;
b)XYZ Construction Company is building a 250-unit apartment complex in Embakasi, Kenya. The project consists of hundreds of activities involving excavating, framing, wiring, plastering, painting, landscaping and more. Some of the activities must be done sequentially and others can be done simultaneously. Also, some of the activities can be completed faster than normal by acquiring additional resources.
Required:
i)How would Quantitative Techniques be used to solve this problem?
ii)What would be the uncontrollable inputs?
iii)What would be the decision variables of the model? The objective function?
The constraints?
iv)Is the model deterministic or stochastic?
v)Suggest assumptions that could be made so simplify the model.
Date posted: March 31, 2018. Answers (1)
- Your firm is the auditor of Trent Textiles Ltd, and you are planning your
audit work on the stock-take, which will be carried out at...(Solved)
Your firm is the auditor of Trent Textiles Ltd, and you are planning your
audit work on the stock-take, which will be carried out at the firm‟s year-
end of 31 May 19X3.
Trent Textiles manufactures knitted garments, including pullovers. The
production process comprises:
(a) Knitting the individual components (e.g body and arms);
(b) Sewing the components together to form the finished garment;
(c) Cleaning, finishing, pressing and folding the garments;
(d) Packing the garments, ready for dispatch to the customer.
Trent Textiles does not have a perpetual inventory system, so the value of
the stock in the accounts is found from the stock-take at the year-end. For
management purposes, Trent Textiles carries out a full stock-take every
three months.
Your permanent file of the company confirms that it has a single factory
and no internal audit department.
You have been asked by the manager in charge of the audit to suggest the
work you will perform at the stages listed below.
Required:
(a) State the work you will carry out prior to the commencement of the
stock-take.
(b) State the procedures you will check during the stock-take to ensure
the company‟s staff have accurately recorded the stock.
(c) State the work you will carry out and the matters you will record at the
stock-take
Date posted: March 30, 2018. Answers (1)
- In auditing the financial statements of companies which use computerized
accounting systems, the auditors may find that this traditional (audit) trail is
often obscured. Various...(Solved)
In auditing the financial statements of companies which use computerized
accounting systems, the auditors may find that this traditional (audit) trail is
often obscured. Various techniques can be used in order to give the
auditors greater assurance when the audit trail is lost.
Required;
a) Explain why there is a possible loss of audit trail when companies
utilize computerized accounting systems and why auditing through
the computer assists the auditors in overcoming this loss of audit
trail.
b) Explain how the auditors can use analytical procedures in order to
give them greater assurance when there is a loss of audit trail.
c) Outline how audit software can be used by the auditors in order to
assist them in carrying out their analytical procedures.
d) Explain the possible reasons and implications (audit) of significant
changes in the following ratios when compared to the prior years
ratios:
i. The debtors turnover ratio has decreased over the year.
ii. The stock turnover ratio has decreased from the previous year‟s
rate.
Date posted: March 30, 2018. Answers (1)
- (a) Define tests of controls, substantive procedures and walk-through
tests.
(b) Explain how assessment of systems and controls impacts upon the
main stages of the...(Solved)
a) Define tests of controls, substantive procedures and walk-through
tests.
(b) Explain how assessment of systems and controls impacts upon the
main stages of the audit process
(c) Explain the role that internal control questionnaires and internal
control evaluation questionnaires play in determining the effectiveness
of the systems of internal control.
Date posted: March 30, 2018. Answers (1)