Money, prices and exchange rates

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Money, prices and exchange rates by Mind Map: Money, prices and exchange rates

1. Concept of money

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

1.1.1. History

1.1.1.1. -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

1.1.1.1.1. How is money created?

2. Interest rates

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

2.1.1. Types

2.1.1.1. 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.

2.1.1.1.1. In Colombia

3. Price

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

3.1.1. Price determinants

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