Money, prices and exchange rates

1. Price

1.1. The CPI is the weighted average of the prices of the basket of goods and services consumed by a representative individual.

1.1.1. Price determinants

1.1.1.1. -Dollar offer -Amount of money -Foreign investors -Government -Trade balance -Extreme indebtedness

2. Concept of money

2.1. Everything that is commonly accepted as a means of payment to acquire goods, services and obligations.

2.1.1. History

2.1.1.1. -Arises with the division of labor -Means of exchange -Money - commodity gold -Requirements: * Universal acceptance * Non-perishable * Can be added and subtracted to * * * find equivalences

2.1.1.1.1. How is money created?

3. Interest rates

3.1. The price paid for a monetary loan is expressed as a percentage of the loan amount.

3.1.1. Types

3.1.1.1. Active rate: The rate charged by a bank for the loans it grants (assets). Passive rate: The rate at which the bank collects savings from the public.

3.1.1.1.1. In Colombia