Money and Finance: Crash Course Economics #11

So, we've been putting off a kind of basic question here. What is money? What is currency? How are the two different. Well, not to give away too much, but money has a few basic functions. It acts as a store of value, a medium of exchange, and as a unit of account. Money isn't just bills and coins. It can be anything that meets these three criteria. In US prisons, apparently, pouches of Mackerel are currency. Yes, mackerel the fish. Paper and coins work as money because they're backed by the government, which is an advantage over mackerel. So, once you've got money, you need finance. We'll talk about borrowing, lending, interest, and stocks and bonds. Also, this episode features a giant zucchini, which Adriene grew in her garden. So that's cool.

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[jacquelinearteaga]

Dear Crash Course Economics team, I want to thank you for everything. A few weeks ago, I was panicking because my academic decathlon competition was coming up and I knew nothing of economics. What did I do? I watched all your videos and as a result I received a medal in economics!!! Thank you for everything. Continue the good work!!!

[stas]

Some notes if anyone needs em!

-Barter system is the alternative to money, but is highly inefficient
-Money serves as a medium to exchange, store of value, and a unit of account
-In the past we had the gold standard which connected each dollar to a value of gold
-Stock market is part of the Financial system which is composed of Lenders (corporations and households) and borrowers (households, businesses, governments)
-Financial system = a network of institutions, markets, and contracts that brings lenders and borrowers together
-3 ways this happens: banks, bonds, stock market
-Banks deal with debt, stocks deal with equity (the difference between the value of assets/ interests and the cost of the liabilities of something owned)
-Financial instrument = a tradeable asset of any kind
-Banks are Financial Institutions = an establishment that conducts financial transactions such as investments, loans, and deposits

[killerfrenchy]

10 BITCOIN FOR A ZUCCHINI? That zucchini better be embedded with gold or something, damn.

[ryantsui]

Does Patreon accept Zucchinis as payment?

[MH-mkzb]

You guys are so awesome!! One of the most boring subjects has changed into one of the most interesting ones! Thank you!!

[bxcinderella]

OMG! Love this!
Thanks for actually speaking at a rate that I can follow. Other videos are edited and sliced together so tightly that it has NO pauses in between sentences for the information to sink in.

[economath]

This is the best video in the series so far. Straightforward, easy to follow, and no political stalking horses.

[dohawalid]

I have been trying to understand a chapter on money and banking for almost 2 days and i couldnt get anywhere. Thank you crasg course for finally making me get a hold in this

[aaronquadd]

When this episode came out bitcoin was around $240. $2000 for a giant zuccini is outrangous

[danieljohnkirby]

Now I'm imagining somebody tryna steal 4 tons of limestone.

[danieltan]

I love this channel for giving so much information about something that I am interested in

[jellyfsh]

Thank you guys!!! Economics is something i've never understood (especially the stock market) but this really helped

[Linares]

I mean, she should have expected the zucchini jokes...

[linhvu-lppu]

I especially love this video, Crash Course has broadened my horizon about the stock market and the financial system. Thank you!

[Sunflowersarepretty]

Thank you Crash Course. Love the way you people explain. ♥️

[greatwolf.]

A minor correction, bitcoin is *not* anonymous; it is pseudonymous. All transactions that have ever occurred since Bitcoin's inception is permanently recorded on the public world-wide ledger. There're no names and identities associated with each transaction but it doesn't mean someone can't figure out who made those transactions with some research. In fact, there are already tools to help assist with this.

Given that fact, using bitcoins for illicit transactions is ill advised; fiat cash like dollars and euros is better suited for that purpose.

[TheBrendanLea]

I appreciate the service you are performing for others with your videos. Thank you! Please keep it up.

[ImOldandSoAreMyBooks]

I like that you made this so easy to understand and process, thank you!

[karthickraja]

Thanks for this Wonderful Course Team!

[KatsC]

Thank you for making this video so easy to follow through