CrashCourse - 2015-10-14
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. Special thanks to Dave Hunt for permission to use his PiPhone video. this guy really did make an artisanal smartphone! https://www.youtube.com/watch?v=8eaiNsFhtI8 Crash Course is on Patreon! You can support us directly by signing up at http://www.patreon.com/crashcourse Thanks to the following Patrons for their generous monthly contributions that help keep Crash Course free for everyone forever: Fatima Iqbal, Penelope Flagg, Eugenia Karlson, Alex S, Jirat, Tim Curwick, Christy Huddleston, Eric Kitchen, Moritz Schmidt, Today I Found Out, Avi Yashchin, Chris Peters, Eric Knight, Jacob Ash, Simun Niclasen, Jan Schmid, Elliot Beter, Sandra Aft, SR Foxley, Ian Dundore, Daniel Baulig, Jason A Saslow, Robert Kunz, Jessica Wode, Steve Marshall, Anna-Ester Volozh, Christian, Caleb Weeks, Jeffrey Thompson, James Craver, and Markus Persson -- Want to find Crash Course elsewhere on the internet? Facebook - http://www.facebook.com/YouTubeCrashCourse Twitter - http://www.twitter.com/TheCrashCourse Tumblr - http://thecrashcourse.tumblr.com Support Crash Course on Patreon: http://patreon.com/crashcourse CC Kids: http://www.youtube.com/crashcoursekids
Main outtakes of this lesson
1) Money serve three main purposes:
- Medium of exchange. It is generally accepted for payment for goods and services.
- Store of value. Money can be stored.
- Unit of account. Money is standartized metric that helps us measure value of things.
2) Financial system.
a. Lenders
b. Borrowers
c. Governments
d. Capital - the machinery, tools and factories owned by a business and used in production.
e. Financial system is a network of institutions, markets and contracts that brings lenders and borrowers together.
f. Debt - if you get a loan from the bank, you are obligated to pay back the amount you borrowed plus the amount of interest.
g. Equity - the difference between the value of the assets/ interest and the cost of liabilities of something owned.
h. Financial instrument - a tradeable asset of any kind.
i. Financial institution - an establishment that conducts financial transactions such as investments, loans and deposits.
j. Financial markets with instruments like stocks and bonds, allow borrowers to crowdsource the money they need to borrow. They raise their capital from lots of investors, and spread the risk around.
Сергей Галиуллин I feel like all of your comments here serve as more of a guideline and something that ensure that I understood the lesson correctly instead of a means to skip my homework, so thanks so much
@Сергей Галиуллин no....
Hey great video, especially the tips concerning money management course
. A product I also found helpfull for how to get credit report
is Renkarter Amazing Finance Report - find it on google if you want
Money is a generic word. So please specify what you talking about when you're Saying the word money.
Shut up nerds..say something about how money is accumulated..bye force or bye honesty ..that control of sovereignty ambitions and expansion..stop giving us your trash..i had enough of you..🤬
I bet she loved that Zucchini..
she wants to sell it i think in the perv market she might get more money than she bargained for
i know i did
No wonder he didnt want tat Zucchini anymore...
Awesome, imagine the smell.
Yes, zucchini is good for making noodles
I mean, she should have expected the zucchini jokes...
I think they did that on purpose , to negate the sheer panic and revulsion this particular subjects , ie, finance creates in many ppl. They are hoping to ease them in with some normal jokes and stuff .
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
When you say the word money, I don't know what the hell you're talkin about. Are talking about a worthless Federal Reserve Note or a silver certificate or are you talkin about a coin you guys are so stupid. You just throw the word money out there. You don't specify what you're talking about.
You're another clueless human being you keep making stupid statements like a barter is the alternative to money gold and silver were used as money you are a clueless human being you can't even have an intelligent conversation
Why do people say gold and silver are money they're Barter First and are used as money but if you had any brains and you actually read the laws you don't understand what you were saying is incorrect you want to debate me bring it on
What law states would a dollar is please let me know here because I'm all ears I got all day long to to learn from you know it all person what law states what a dollar is in law please tell me
Debate me one point at a time I don't want to hear any garbage rambling on here you take me on one point at a time and show me that you're smarter than me and don't start crying cuz they called your name don't be a crybaby take it like a man you can call me whatever names you want I don't care I'm a man I'm not a crybaby or sissy come on bring it on let's debate here one point at a time
please make a course for accounting
I agree! These Crash Course videos are incredibly helpful and informative.
I recommend Farhat Lectures. Not as fun as CC, but it is accounting after all...
10 bit coins ($2,500) for zucchini? what is she smoking?
Is the offer still on?
Shes smoking zucchini
@EatenByAGrue yea right...
@EatenByAGrue 🤣🤣🤣🤣
one bitcoin is $7,800 better be one good zucchini
Does Patreon accept Zucchinis as payment?
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!!!
NONE OF THIS WAS TAUGHT IN MY FINANCE 101 CLASS. .... AHAHHHHHH PROFESDOR WHY WON'T YOU GIVE US A STUDY GUIDE FOR THE FINAL??? IM GOING TO DIE TOMORROW
the guy: we dont need these green sheets of paper
Also him: you can support us with your green sheets of paper
we dont need them but they do coincidence i think not.
Did anyone else notice the bag of chips in the black and white picture?
+Mickey Odunikan
No. You were the only one who spotted that.
2:06 yeah I did. I stopped to see if anyone else did and to post a timestamp :p
+Mickey Odunikan
illuminati
In a time where time traveling exists, man, goes back in time to where this photo was taken and accident leaves bags of Ruffles.
Crash Course= A + I wish my college Professors went to Crash Course College =)
This is the best video in the series so far. Straightforward, easy to follow, and no political stalking horses.
you want 10 bitcoins for that? (= 2200 euro)
10 Bitcoins now $89,000
Yaiga Universe
now even
10 Btc = $200,000 In Dec 17th
10 BTC = $100,000 now
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.
Damn that pizza looked good
where did you get this african zucchini.?
Ah I see what u did there.
Also, taking ur comment literally then she probably imported it from the middle of the Congo rainforest. No wonder she's expecting 10 bitcoins for it.
Ruffles must have been around forever...
Did anyone see the Ruffles bag?
Listen you crustaceous cheapskate! Squidward's been living at my house driving me crazy! And you're not gonna hire him back all because of a stupid dime?!
you know you're addicted to Monopoly when you already know the barter system without knowing the name
thank you for all that valuable information and interesting presentation.
I wish if I can donate 100 dollar to you , but it's impossible to do that from sudan
Funny enough this is exactly what my Finance course taught me. Go figure!
Competition in currencies is the way to go. I like gold and bitcoin.
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.
I'd would do "THINGS" for that pizza at the start of the video
GREEN pieces of paper...I'll go now.
thank you for all that valuable information and interesting presentation.
I wish if I can donate 100 dollar to you , but it's impossible to do that from sudan
Thank you guys so much, you have been so helpful really, you have no idea how hard economics has been for me, thanks so much
"The most important single central fact about a free market is that no exchange takes place unless both parties benefit." - Milton Friedman
naveen, you are a brave man
...unless both parties think they're gonna benefit" *
AutodidacticPhd Or that people can end up purchasing something detrimental. Lots of flaws in economic theory and of defunct economists.
Ryosuke1208 Nice addition to it.
@Eric Culver
Free trade is not free market.
I hold my degree in finance with highest honors. Why am I watching this?
Oh right. Cuz I'm unemployed. :-p
I like that you made this so easy to understand and process, thank you!
Love the mention of bitcoin!
Thank you million times ! How dare you, I want to transfer to study Econ because of you, and I used to hate it !
I appreciate the service you are performing for others with your videos. Thank you! Please keep it up.
I love this channel for giving so much information about something that I am interested in
The barter system is coming to an end.
0:48 The barter system is just an ideal and never existed as a large system. Instead people traded on credit. The idea of friend's, family, neighbor's IOU system. Money was invented NOT to represent the barter system but rather as an easy way to represent how much your friend's, family, or neighbor's owe you.
+Richard Fry, Do not believe me? That is OK, John Green himself pointed this out in the following video:
Money and Debt: Crash Course World History 202
At 3 minutes and 44 seconds into the video he touches on this topic of bartering specifically
+Richard Fry Came here for this comment!! I'm currently reading Debt: The First 5000 Years by David Graeber which John bases that video off. Extremely fascinating book and well worth reading if you're interested in the origins of money.
Economics now a days don't care about history. In ancient times, they never bartered, they used IOU's. You are right. They only bartered for international trade because it was hard to see the other party as genuine so they traded gold or something valuable, that is barter. But the domestic economy used IOU's, they rarely bartered.
Richard Fry even iou's were not issued for the most part. It was more like 'im more likely to help people who have helped me' which isn't even quantified in terms of 'value'.
Lmaoooo 10 bitcoin is like 70000$ ill gladly buy the zucchini
these series are amazing thank you !
huh, going at x1.25 speed improved my viewing experience, who knew?
2:10 ME FIRST DIME!
Doing this for economics class, I'm so gonna fail
Very well explained,thank you so much and keep up the good work !
That zucchini must have gold in it
I'll buy your zucchini!!!
My stocks are doing great,always do in any market,see them in my videos,now off to a good nights sleep!!!
This is so helpful! Thank you so so much!!!
killerfrenchy - 2015-10-14
10 BITCOIN FOR A ZUCCHINI? That zucchini better be embedded with gold or something, damn.
Divay Pratap - 2017-12-10
lalo cordova ikr
B RS - 2019-09-18
18/09/2019 1BT= $10,226.78
That's one expensive courgette
Tristan George - 2019-10-12
I remember when bitcoin was 11 dollars a coin.
Should have bought in.
David Daniel - 2020-03-17
@killerfrenchy up to 5200 now, thats one expensive zucchini lmao
Abhi Prakash - 2020-03-19
It's infused with the fluids of many a female