The Federal Reserve also known as the Fed is mainly responsible for preventing and mediating any potential economic financial crisis. The Fed uses tools to control the supply of money to help stabilize the economy. The three tools used are to change reserve requirements, open-market operations and change in discount rate. (Investopedia, 2018) Also M1 and M2 are both used to measure the money supply by the Fed. M1 is composed of checking account balances, cash, coins, and traveler’s checks circulating in the economy. M2 is composed of everything in M1 plus all savings account balances, certificates of deposit, money market account balances, and U.S. dollars on deposit in foreign banks. M1 is used as a medium of exchange. M2 is used as a store …show more content…
The currency of both Japan and the United States are both forms of money. The function of money is anything that functions as a medium of exchange. Buying and selling goods or services is the medium of exchange. Money is also a way of measuring the value or worth of a good or service. Also, keep in mind that money has a standard of value. Meaning one may have a twenty-dollar bill today and if saved that twenty-dollar bill is still worth twenty dollars a year from now. Money can be physically held and used as payment in hand; however, there is a new upcoming currency that is online. The new sensation of online currency is …show more content…
It is a crypto-security that is basically a public ledger called blockchain. Blockchain enables trust between two parties without the need of forming any sort of relationship and eliminates the middle man. Blockchain uses algorithms created by miners which is almost virtually impossible to crack. Therefore, making bitcoin transactions secure. The only issue is blockchain only protects transactions, it does not protect bitcoin wallets. Fortunately, with blockchain being a public ledger firms will have a harder time cooking the books and this gives share holders more insight into their investment. In other words, blockchain is a way of keeping companies