Trove: Find and get Australian resources. Books, images, historic newspapers, maps, archives and more. Understanding business edition by nickels mchugh and mchugh test bank James M. McHugh Susan M. McHugh Understanding. Understanding. —Business. William G. Nickels. University of Maryland. James M. McHugh. St. Louis Community College at Forest Park. Susan M. McHugh.
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Understanding Business ELEVENTH EDITION. William G. Nickels University of Maryland. James M. McHugh St. Louis Community College at. If searching for a book by Nickels, McHugh, McHugh UNDERSTANDING BUSINESS 8th Edition/International. Edition in pdf format, then you have come on to the. Understanding Business, download Understanding Business with Connect Plus ✓ FREE SHIPPING on by William Nickels (Author), James McHugh (Author), Susan .
Many returning students are changing their careers and their plans for life. In fact, in recent years the percentage increase of students age 25 or older enrolling in college has been larger than the percentage of younger students. It can be the path to long-term happiness and success. Learning has become a lifelong job. Figure P. There are no perfect or certain ways to prepare for the most interesting and challenging jobs of tomorrow.
Rather, you should continue your college education, develop strong technology and Internet skills, improve your verbal and written communication skills, and remain flexible and forward thinking while you explore the job market. The rewards of college are well worth the effort for graduates, who can expect to earn over 60 percent more than high school graduates over the course of their careers.
Businesses like graduates too, because the growing needs of a global workplace require knowledgeable workers to fill the jobs of the future. What other benefits do you see from earning a college degree?
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One of the objectives of this class, and this book, is to help you choose an area in which you might enjoy working and have a good chance to succeed.
At the end of the course, you should have a much better idea which careers would be best for you and which you would not enjoy. You can use marketing principles to get a job and to sell your ideas to others. You can use your knowledge of investments to make money in the stock market.
Hundreds of schools use software exercises like the System for Interactive Guidance and Information SIGI and DISCOVER to offer selfassessment exercises, personalized lists of occupations based on your interests and skills, and information about different careers and the preparation each requires. Add additional contacts, mentors, and resource people, and keep the notes you make when talking with them about careers including salary information and courses you need to take.
An effective way to become an expert on almost any business subject is to set up your own information system. You can store data on your computer, tablet, and cell phone back up these files! Keep as many of your textbooks and other assigned readings as you can, as well as your course notes.
Read your local newspaper. Each time you read a story that interests you, save a paper copy or add a link to the story online in your electronic file, under a topic heading like careers, small business, marketing, economics, or management.
Get familiar with a variety of sources and use them. Try viewing some of these shows or listening to similar ones on the radio, and see which ones you like best.
Take notes and put them in your files. Keep up with business news in your area so that you know what jobs are available and where. You may also want to join a local business group to begin networking with people and learning the secrets of the local business scene.
Many business groups and professional business societies accept student members. As the world becomes increasingly competitive, the gold goes to teams and individuals with that extra bit of polish. The person who makes a good impression will be the one who gets the job, wins the promotion, or clinches the deal. Certainly make it a point to arrive on time, open doors for others, stand when an older person enters the room, and use a polite tone of voice.
You may want to take a class in etiquette or read a book on etiquette to learn the proper way to eat in a nice restaurant, what to do at a formal party, and so on. Some rules are not formally written anywhere; instead, every successful businessperson learns them through experience. Here are the basics: 1. Making a good first impression. Therefore, how you dress and how you look are important.
Take your cue as to what is appropriate at any specific company by studying the people there who are most successful.
What do they wear? How do they act? P-5 Networking provides you with an array of personal contacts on whom you can call for career advice and help.
Have you begun creating your network yet? P-6 Many businesses have adopted business casual as the proper work attire, but others still require traditional clothing styles. How does your appearance at work affect both you and your company? Focusing on good grooming. Be aware of your appearance and its impact. Wear appropriate, clean clothing and a few simple accessories.
Revealing shirts, nose rings, and tattoos may not be appropriate in a work setting. Wrinkled clothing, shirttails hanging out, and hats worn indoors are not usually appropriate. For women, business casual attire includes simple skirts and slacks no jeans , cotton shirts, sweaters not too tight , blazers, and low-heeled shoes or boots. Men may wear khaki trousers, sport shirts with collars, sweaters or sport jackets, and casual loafers or lace-up shoes.
Being on time. I have more important things to do than be here. Pay attention to the corporate culture. Sometimes you have to come in earlier than others and leave later to get that promotion you desire. To develop good work habits and get good grades, arrive in class on time and avoid leaving or packing up to leave early. Practicing considerate behavior.
Eliminate profanity from your vocabulary. Use appropriate body language by sitting up attentively and not slouching. Sitting up has the added bonus of helping you stay awake! Professors and managers alike get a favorable impression from those who look and act alert. Practicing good e-mail etiquette. The basic rules of courtesy in face-to-face communication also apply to e-mail exchanges. Introduce yourself at the beginning of your first e-mail message. Next, let your recipients know how you got their names and e-mail addresses.
Then proceed with your clear but succinct message, and always be sure to type full words ur is not the same thing as your. Finally, close the e-mail with a signature.
Do not send an attachment unless your correspondent has indicated he or she will accept it. Ask first! You can find much more information about proper Internet etiquette, or netiquette, online—for example, at NetManners. Practicing good cell phone manners.
Your Introduction to Business class is not the place to be arranging a date for tonight. Turn off the phone during class or in a business meeting unless you are expecting a critical call.
If you are expecting such a call, let your professor know before class. Turn off your ringer and put the phone on vibrate. Sit by the aisle and near the door. If you do receive a critical call, leave the room before answering it. Apologize to the professor after class and explain the situation. Practicing safe posting on social media.
Be careful what you post on your Facebook page or any other social media. While it may be fun to share your latest adventures with your friends, your boss or future boss may not appreciate your latest party pictures.
Be aware that those pictures may not go away even if you delete them from your page. If anyone else downloaded them, they are still out there waiting for a recruiter to discover. Make sure to update your privacy settings frequently. Be mindful that social media accounts time-stamp your comments. Being prepared. A businessperson would never show up for a meeting without having read the appropriate materials and being prepared to discuss the topics on the agenda.
For students, acting like a professional means reading assigned materials before class, having written assignments ready to be turned in, asking and responding to questions in class, and discussing the material with fellow students. Just as traffic laws enable people to drive more safely, business etiquette allows people to conduct business with the appropriate amount of consideration.
Sharpen your competitive edge by becoming familiar with its rules. If your job or career requires you to travel internationally, learn the proper business etiquette for each country you visit. In Japan, businesspeople typically bow instead of shaking hands, and in some Arab countries it is insulting to sit so as to show the soles of your shoes.
Honesty, high ethical standards, and reliability and trustworthiness are important for success in any country.
Having a reputation for integrity will enable you to be proud of who you are and contribute a great deal to your business success. Unethical behavior can ruin your reputation; so think carefully before you act. Ethics is so important to success that we include discussions about it throughout the text. Career, family, and hobbies all benefit from organizational and time management skills you can apply right now.
Here are some tips for improving your study habits, taking tests, and managing your time. Study Hints For the remainder of your college career, consider studying to be your business. So until you get out of school and into your desired occupation, studying is your business. And like any good businessperson, you aim for success.
Understanding Business 11th Edition PDF
Follow these strategies: 1. Go to class.
But nothing is more important to doing well in school than going to class every time. If possible, sit in the front near the instructor.
This will help you focus better and avoid distractions in the room. Listen well. Make eye contact with the instructor. In your mind, form a picture of what he or she is discussing. Include your existing knowledge and past experiences in your picture. This ties new knowledge to what you already know. In some cultures bowing is a form of greeting to show respect. How can you learn the appropriate business etiquette for the countries in which you do business?
Take careful notes. Make two columns in your notebook, laptop, or tablet. On one side write down important concepts, and on the other examples or more detailed explanations. Use abbreviations and symbols whenever possible and wide spacing to make the notes easier to read. Edit your notes after class to make sure you fully understand what was discussed in class. Rereading and rewriting help store the information in your long-term memory.
Learn the concepts in your courses the same way you learn the words to your favorite song: through repetition and review. Find a good place to study. Find a place with good lighting and a quiet atmosphere. Some students do well with classical music or other music without lyrics playing in the background. Have you adopted this system? Survey or scan the chapter first to see what it is all about. This means looking over the table of contents, learning objectives, headings, photo essays, and charts so you get a broad idea of the content.
The summaries at the end of each chapter in this text provide a great overview of the concepts in the chapter. Scanning will provide an introduction and help get your mind in a learning mode. Write questions, first by changing the headings into questions. Read the chapter to find the answers to your questions. Be sure to read the boxes in the chapter as well. They offer extended examples or discussions of the concepts in the text.
Recite your answers to yourself or to others in a study group. Make sure you say the answers in your own words so that you clearly understand the concepts.
Research has shown that saying things is a more effective way to learn them than seeing, hearing, or reading about them. While often used in study groups, recitation is also good practice for working in teams in the work world. Review by rereading and recapping the information. The chapter summaries are written in a question-and-answer form, much like a classroom dialogue.
Cover the written answers and see whether you can answer the questions yourself first. Use flash cards.
Use Connect Introduction to Business if your professor has recommended it for your course. Go over old exams, if possible. It is unethical, though, to go over exams you obtain illegally.
Use as many of your senses in learning as possible. You can also benefit from reading or studying aloud. Your professor has a set of videos that illustrate the concepts in this text. Cover the written answers and see whether you can answer the questions yourself first. Make two columns in your notebook. Make sure you The SQ3R study system say the answers in your own words so that you clearly understand the concepts.
SmartBook creates a personalized reading. Rereading and rewriting help store the information in your long-term memory. Review by rereading and recapping the information. This means looking over the table of contents.
Use abbreviations and symbols whenever possible and wide spacing to make the notes easier to read. Scanning will provide an introduction and help get your mind in a learning mode.
Recite your answers to yourself or to others in a study group. Be sure to read the boxes in the chapter as well. Use flash cards. Narrowing the choices to two or three improves your odds. Go over the test at the end.
At home before the test. If you keep up with your reading and your reviews on a regular basis. Turn the test over and write down information you remember. If the answer you think of is one of the choices. All parts of the statement must be true or else the entire statement is false.
If you are still unsure of the answer. Explain or defend your answers. Use complete sentences with correct grammar and punctuation. If you start to get nervous during the test. These often make a statement false.
Get to class early to settle down. If old exams are not available from your professor. Read the directions on the exam carefully. Answer all the questions. Try covering up the choices while reading the question. Watch out for absolutes such as never. Read all the answers in multiple-choice questions. Sometimes this helps you connect the information you know to the questions on the test.
It is unethical. You could end up with all your subsequent answers scored wrong! Bring all you need for the exam. Read them all to be sure you pick the best. You can also benefit from reading or studying aloud. Think about the sequence in which to present what you want to say. Get plenty of sleep and have a good meal.
Unless your instructor takes off more for an incorrect answer than for no answer. Ask beforehand. Go over old exams.
Use as many of your senses in learning as possible. Even if there is more than one correct-sounding answer to a multiple-choice question. Organize your thoughts before answering essay questions. Reread the chapter summaries. Here are a few test-taking hints: Picture yourself in the testing session.
Test-Taking Hints Often students will say. Doing the Developing Workplace Skills exercises at the end of each chapter will be a big help. Your professor has a set of videos that illustrate the concepts in this text. If you do a few pages a day. Draw lines to form columns and rows and fill in all the activities you have planned in each hour.
Prepare for the next day the night before. Include both academic and social activities so that you can balance your work and fun. Write the days of the week across the top of the page.
Having everything ready to go will help you make a quick. In what other ways can you defend your study time? Time Management Hints The most important management skill you can learn is how to manage your time.
Space out your work. Write weekly goals for yourself.
Here are some hints other students have learned— often the hard way: That gives you one less thing to do: Jot tasks down as soon as you know of them. Use a calendar to fill in activities and upcoming assignments. Prepare weekly and monthly schedules. Take time for fun. Schedule your fun times along with your studying so that you have balance. Write the hours of the day from the time you get up until the time you go to bed down the left side.
Make certain your goals are realistic and attainable. If you have some fun every day. Use a commercial printed or electronic daily planner or create your own. Reward yourself when you reach a goal. Prepare a daily schedule. It is really difficult to push out 20 pages in a day or two. You should also keep a running list of goals and things you need to do each week.
Study every day. Now is as good an opportunity to practice as any. Defend your study time. Here are seven basic resources for the class in addition to the text: Even if your professor does not assign these materials.
Students from other countries can help you learn about different cultures and different approaches to handling business problems. Review develop your career and become familiar with the following magazines and newspapers during path. Harvard Business Review. Bloomberg Businessweek.
Many professors get job leads they can pass on to you and can provide letters of recommendation too. Part of being a successful businessperson is learning how to work with others.
Hispanic Business. Learn to manage your time well. Connect Introduction to Business online course material if your professor has recommended it for your course Your college professors will help you review and interpret key material and give you practice answering are among the most test questions. Hearing and talking about those experiences exposes you to many real-life examples that are invaluable for understanding business.
Fast Company. Some are also available online free. There is strength in diversity. How many of your professors have you the course and throughout your career: The Wall Street Journal. One of the most valuable facets of college is the chance to study with experienced professors. One secret to success in business is staying current.
The Economist. Some professors encourage their students to work together and build teamwork as well as presentation and analytical skills. If your bank account balance falls. Many college students have had experience working in business or nonprofit organizations. The professor. Outside readings. The supplements that come with this text.
But you have only a limited amount of time and there is no way to make more. Your own experience and that of your classmates.. Black Enterprise. These questions give you a chance to pause. Looking at the photos and reading the photo essays captions before you read the chapter will give you a good idea of what the chapter is all about. The world can be your classroom.
Developing a strong business vocabulary is one of the most important and useful aspects of this course. One of the best ways to learn about different businesses is to visit them in person.
Be constantly on the alert to find career possibilities. Getting the Most from This Text Many learning aids appear throughout this text to help you understand the concepts: Key terms. When you go shopping. If something looks interesting. The opening stories will help you get to know professionals who successfully use the concepts presented in the chapters.
The end-of-chapter questions help you relate the material to your own experiences.
Understanding Business (12th edition) – PDF – eTextBook
The Internet. Since every student at one time or other has found it difficult to get into studying.
Photo essays. A full glossary is located in the back of the book. Throughout this text we present information and exercises that require you to use the Internet. The Internet offers more material than you could use in a lifetime. Each chapter contains a number of boxed extended examples or discussions that cover major themes of the book: The Name That Company feature at the beginning of each chapter challenges you to identify a company discussed in the chapter. The library or learning resource center.
Think about owning or managing a restaurant. Work with your librarian to learn how to best access the information you need. The photos offer examples of the concepts in the chapter.
You should rely heavily on these learning aids in adding new terms to your vocabulary. Information changes rapidly. Key terms are also defined in the margins. List of Learning Objectives at the beginning of each chapter.
Many will be pleased to give you their time and honest opinions. To assist you. Reading through these objectives will help you set the framework and focus for the chapter material. End-of-chapter summaries. Critical Thinking questions. Getting to Know and Name That Company features. Self-test questions.
Outside contacts. The library is a great complement to the Internet and a valuable resource. February To really remember something. Barbara Pachter. Policy ASAP. March To do your best.
A Global Guide. These cases feature companies. Video Cases. June These exercises direct you to dynamic outside resources that reinforce the concepts introduced in the text. January David Lavenda and Susan Fisher. May Developing Workplace Skills exercises. Danielle Kurtzleben. Andy Molinsky. Jeanne Meister. Use Global Awkward Networking Waltz. Census Bureau. February 7.
Taking It to the Net exercises. National Center for Education Studies. October LO Demonstrate how businesses can meet and beat competition. LO Analyze the social changes affecting businesses. LO Compare and contrast being an entrepreneur and working for others. LO Identify what businesses must do to meet global challenges. LO Analyze the effects of the economic environment and taxes on businesses.
LO Describe the effects of technology on businesses. Sammy Hagar has With his bandmates as partners. Along me. August In he video screens during his live bought and expanded a specialty moun. The were progressing steadily. But unlike said. Hagar was and brings awareness to food banks by always careful not to depend solely on featuring information about them on his music to earn money.
September The the profits from his airport restaurants to early s found him packing stadiums charity. Entrepreneurs before. Sammy Hagar. After By the liquor had become so popu- first finding success with the band Mon.
Hagar credits his mother as his tination both for locals and tourists. As the www. All trose. From humble beginnings to the ing an active role in the business. Then as the band Although Hagar has come a long way began to tour more. November The heights of international stardom. The small resort hideaway ended Hagar: In addition to contributing all of Hagar focused on his solo career. Whenever Hagar got a free Sources: List of Learning Objectives at the beginning of each chapter.
Reading through these objectives will help you set the framework and focus for the chapter material. Since every student at one time or other has found it difficult to get into studying, the Learning Objectives are there to provide an introduction and to get your mind into a learning mode.
Getting to Know and Name That Company features. The opening stories will help you get to know professionals who successfully use the concepts presented in the chapters. The Name That Company feature at the beginning of each chapter challenges you to identify a company discussed in the chapter. Photo essays. The photos offer examples of the concepts in the chapter. Looking at the photos and reading the photo essays captions before you read the chapter will give you a good idea of what the chapter is all about.
Self-test questions. Key terms. Developing a strong business vocabulary is one of the most important and useful aspects of this course. To assist you, all key terms in the book are highlighted in boldface type. Key terms are also defined in the margins, and page references to these terms are given at the end of each chapter.
A full glossary is located in the back of the book. You should rely heavily on these learning aids in adding new terms to your vocabulary.
Each chapter contains a number of boxed extended examples or discussions that cover major themes of the book: End-of-chapter summaries. Critical Thinking questions. The end-of-chapter questions help you relate the material to your own experiences.
Developing Workplace Skills exercises. Taking It to the Net exercises. These exercises direct you to dynamic outside resources that reinforce the concepts introduced in the text. Video Cases. These cases feature companies, processes, practices, and managers that bring to life the key concepts in the chapter and give you real-world information to think over and discuss.
To do your best, take advantage of all the learning aids available to you. National Center for Education Studies, www. Census Bureau, www. Describe the relationship between profit and risk, and show how businesses and nonprofit organizations can raise the standard of living for all.
But unlike many of his colleagues, Sammy Hagar has juggled a decades-long music career with a lucrative business portfolio that has earned him tens of millions of dollars over the years. Born to a poor family in Fontana, California, Hagar credits his mother as his first business advisor. After first finding success with the band Montrose, Hagar partnered with his brotherin-law and invested his earnings in some apartment complexes.
When his stint with Montrose ended, Hagar focused on his solo career. However, Hagar was always careful not to depend solely on his music to earn money. In he bought and expanded a specialty mountain bike store called Sausalito Cyclery that soon grew into one of the highestrated bike shops in California.
Whenever Hagar got a free moment in his hectic schedule, he would unwind at his condo in Cabo San Lucas, Mexico. The small resort hideaway ended up giving Hagar his biggest business idea yet. However, his responsibilities with Van Halen prevented him from taking an active role in the business. The failing restaurant added to the tension within the band, and by Hagar and Van Halen parted ways. Hagar bought out his bandmates and hired new management at Cabo Wabo. As the revamped restaurant became a hot destination both for locals and tourists, Hagar looked to expand his brand.
The business environment is constantly changing, and along with those changes come opportunities. The purpose of this chapter, and this text, is to introduce you to the dynamic world of business and to some of the people who thrive in it.
Understanding Business, 11th Edition
Entrepreneurs like Sammy Hagar contribute much to the communities they serve, and they also make a good living doing so. Name that company. You will find the answer in this chapter. One thing you can learn from the chapter-opening Getting to Know feature is that success in business is based on constantly adapting to the market. A business is any activity that seeks to provide goods and services to others while operating at a profit. To earn that profit, you provide desired goods, jobs, and services to people in the area.
Goods are tangible products such as computers, food, clothing, cars, and appliances. Services are intangible products i. Sam Walton of Walmart began by opening one store in Arkansas and, over time, became one of the richest people in the United States. Now his heirs are some of the richest people in the United States.
An entrepreneur is a person who risks time and money to start and manage a business. Revenues, Profits, and Losses revenue The total amount of money a business takes in during a given period by selling goods and services. Revenue is the total amount of money a business takes in during a given period by selling goods and services. Profit is the amount of money a business earns above and beyond what it spends for salaries and other expenses needed to run the operation.
If a business loses money over time, it will likely have to close, putting its employees out of work. About 80, businesses in the United States close each year. Even more close during a recession like the recession of — What seems like a great opportunity one day may become a huge failure when the economy changes.
Starting a business may thus come with huge risks. Matching Risk with Profit Risk is the chance an entrepreneur takes of losing time and money on a business that may not prove profitable. Profit, remember, is the amount of money a business earns above and beyond what it pays out for salaries and other expenses. For example, if you were to start a business selling hot dogs from a cart in the summer, you would have to pay for the cart rental.
You would also have to pay for the hot dogs and other materials, and for someone to run the cart while you were away. After you paid your employee and yourself, paid for the food and materials you used, paid the rent on the cart, and paid your taxes, any money left over would be profit. Keep in mind that profit is over and above the money you pay yourself in salary.
You could use any profit to rent or download a second cart and hire other employees. After a few summers, you might have a dozen carts employing dozens of workers. Not all enterprises make the same amount of profit. Those that take the most risk may make the most profit. There is high risk, for example, in making a new kind of automobile. Big risk can mean big profits.
Standard of Living and Quality of Life Entrepreneurs such as Sam Walton Walmart and Bill Gates Microsoft not only became wealthy themselves; they also provided employment for many other people. Businesses and their employees pay taxes that the federal government and local communities use to build hospitals, schools, libraries, playgrounds, roads, and other public facilities. Taxes also help to keep the environment clean, support people in need, and provide police and fire protection.
Thus, the wealth businesses generate, and the taxes they pay, help everyone in their communities. How has the recent economic slowdown affected the standard of living and quality of life in your part of the world? The term standard of living refers to the amount of goods and services people can download with the money they have. For example, the United States has one of the highest standards of living in the world, even though workers in some other countries, such as Germany and Japan, may on average make more money per hour.
How can that be? Prices for goods and services in Germany and Japan are higher than in the United States, so a person in those countries can download less than what a person in the United States can download with the same amount of money.
Often, goods cost more in one country than in another because of higher taxes and stricter government regulations. Finding the right level of taxes and regulation is important in making a country or city prosperous. At this point, it is enough to understand that the United States enjoys a high standard of living largely because of the wealth created by its businesses. Need help understanding standard of living vs.
Visit your Connect e-book video tab for a brief animated explanation. When Nick Woodman wanted to show off videos of his stunts to other surfers, he used rubber bands and a surfboard leash to attach cameras to his wrist.
What risks and rewards did Woodman face when starting his business? LO Explain what money is and what makes money useful. LO Describe how the Federal Reserve controls the money supply. LO Classify the various institutions in the U.
LO Briefly trace the causes of the banking crisis, and explain how the government protects your funds during such crises. LO Describe how technology helps make banking more efficient. At the Fed, she manages the money supply and interest rates, which keeps her constantly in the public eye. Growing up in Brooklyn, Yellen was an overachiever at a young age.
In high school she served as editor in chief of the newspaper and earned the title of class scholar while holding prominent positions in the booster, history, and psychology clubs. Yellen was named valedictorian and winner of multiple scholastic awards.
She continued this commitment to excellence at Brown University where she was one of the first women to major in economics. Yellen was inspired to study the subject after attending a lecture by James Tobin, a prominent professor and devotee of the famous economist John Maynard Keynes. After getting her undergrad degree, she moved on to Yale University to earn a doctorate in economics, where Tobin served as her advisor.
She used her time in the academic world to make major advances in economics, particularly in regard to unemployment. She has been committed to reducing the effects of unemployment ever since. The toll is simply terrible on the mental and physical health of workers.
Although Yellen was new to government service, she was never afraid to disagree with her superiors. In one famous instance, Yellen publicly debated former Fed chair Alan Greenspan about rising inflation.
While Greenspan wanted to drive inflation down to zero, Yellen argued that a small amount of inflation would actually help to reduce the frequency of recessions. Her use of scholarship and research to back up her claims earned her many admirers as well as detractors, who felt she should have stuck closer to the party line.
Despite these critics, Yellen continued to rise through the ranks. Her presence turned around the ailing branch almost immediately. Only time will tell if success will follow Yellen yet again as she tackles her biggest challenge yet. You will learn more about the Federal Reserve and the banking system in general in this chapter.
Keep up with what she is doing by reading the business press and listening to business reports. Her successes and failures will be making headlines for a long time. What is the name of this company and what currency does it use? You can find the answer in this chapter. You will be hearing a lot about it and its head, Janet Yellen, in the coming years. That is why we chose her to be the subject of the Getting to Know feature for this chapter. Once you have some understanding of the Federal Reserve, our goal in this chapter is to introduce you to the world of banking.
Two of the most critical issues in the United States today, economic growth and the creation of jobs, depend on the ready availability of money. Money is so important to the economy that many institutions have evolved to manage it and make it available when you need it. Today you can get cash from an automated teller machine ATM almost anywhere in the world, and most organizations will also accept a check, credit card, debit card, or smart card for downloads.
Some businesses will even accept Bitcoins, an online version of money. Behind the scenes is a complex system of banking that makes the free flow of money possible. Newer engraved bills make counterfeiting much more difficult than in the past. The bills look a little different from older ones and are different colors. Money is anything people generally accept as payment for goods and services.
In the past, objects as diverse as salt, feathers, fur pelts, stones, rare shells, tea, and horses have served as money. Barter is the direct trading of goods or services for other goods or services. We provided three months of writing services to provide the graphic novel story line. In exchange, they helped us to define, design and then program our new website. In Siberia, for example, people have bought movie tickets with two eggs, and in Ukraine people have paid their energy bills with sausages and milk.
Today you can go to a barter exchange where you can put goods or services into the system and get trade credits for other goods and services that you need. The exchange does that for you. The problem with traditional barter is that eggs and milk are difficult to carry around. One solution is coins and paper bills. The five standards for a useful form of money are: Coins and paper money are a lot easier to take to market than pigs or other heavy products.
Different-sized coins and bills can represent different values. Prior to , a U. When everybody agrees on the value of coins, the value of money is relatively stable. In fact, U. If the value of the dollar fluctuates too rapidly, the world may turn to some other form of money, such as the euro, for the measure of value.
With the latest color copiers, people are able to duplicate the look of paper money relatively easily. Thus, the government has had to go to extra lengths to make sure real dollars are readily identifiable. Electronic cash e-cash is one of the newest forms of money. You can make online payments using Quicken or Microsoft Money or e-mail e-cash. Although people have long used barter to exchange goods without money, one problem is that objects like chickens and eggs are harder to carry around than a ten-dollar bill.
What other drawbacks does bartering have? But these terms are often used when describing Bitcoin, a form of digital currency created in Bitcoin is accepted at online operations ranging from tech-savvy retailers, to pizza parlors, to shady gambling sites.
Transactions involve two people anywhere in the world with no intermediaries banks , government regulations, or transaction fees involved. In fact, you do not even have to give your name. MtGox was once the largest Bitcoin exchange. So just how much is a Bitcoin worth? Value is based on demand, as transactions run across a peer-to-peer network of personal computers.
Since Bitcoins are not managed from a central bank like typical currencies, an arsenal of algorithms constantly recalculates the. This system has caused the value of Bitcoins to spike wildly—then fall in value almost as fast.
Governments are concerned about illegal activities being conducted through Bitcoin transactions. They are also considering taxation issues. Bitcoin is just one of many digital currencies that have hit the market. Whether these currencies achieve a level of stability or just become interesting financial case studies for the digital age remains to be seen.
Recipients can choose automatic deposit to their bank, e-dollars for spending online, or a traditional check in the mail. Bitcoin is a digital version of money that is tougher to forge, cuts across international boundaries, and can be stored on your hard drive instead of in a bank.
However, the Bitcoin is not yet generally accepted. Cryptocurrencies like Bitcoin are too new to know their value, but many competitors have arisen in recent years.
No one knows which of the cryptocurrencies will succeed.List of Learning Objectives at the beginning of each chapter. How has the recent economic slowdown affected the standard of living and quality of life in your part of the world? Certainly make it a point to arrive on time. Some students do well with classical music or other music without lyrics playing in the background.
Wear appropriate. The Wall Street Journal.