Lesson 3 Assignment 2

Student Responses:

“Money, as it has come to be defined today is an interesting topic. What is its value? Ultimately, the value of money is one of perception. What makes it really interesting is that the value assigned by one person, is usually different than the value assigned by another.

In Romania, I was able to purchase some items for much less than the cost of the same product available in America. So what was the difference? Typically the end result desired by the individual making the product available for purchase.

This makes the perception of the value of money of more importance than the actual possession of money. Congress has the responsibility to make sure that money can be used as a reliable means of exchange. This makes it possible to trade in a medium that is easy to handle in many different locations.

Trade is enhanced when the government responsible for it maintains the stability of its money’s value. When the value of money is unstable, trade is stifled as people don’t trust that the value will remain stable over time, making it difficult to know what the value is today vs. what the value will be in the future.”

         —Blake Tuddenham