Value of a Dollar Bill

In: Business and Management

Submitted By Rabownz123
Words 809
Pages 4
What is the true value of the Dollar Bill?
The idea of money is something that is relatively new to our world. Before we had a monetary price for items the entire world worked on a system of trade, where good or services were exchanged as a form of bartering. This system worked well until our trade started to become a global instance, and it was no longer reasonable to try and trade items in mass amounts and between many different countries. This is where the idea of currencies came into play. Today we use a system that we call an economy that determines the value of currencies across the world, and the value of goods. This is how we have arrived to the point we are currently at, using coins and bills to represent value, and to conduct trade. So, what is the true value of our money, and are our bills simple just paper?
If we look at a physical definition of a dollar bill it is indeed just paper. This may not be completely true, as the material we currently use to produce a bill is no longer paper, but at one point is was. Paper is defined by its creation of wood fibers that have been separated and reorganized to create a thin yet strong material that can be written on. This is similar to what our current “paper money” is but it is not exact. Currently our bills are “composed of 25 percent linen and 75 percent cotton. Red and blue synthetic fibers of various lengths” (Treasury, U.S Department of the). Therefore it can be said that by a physical definition, our paper money is not actually paper at all.
So, it has been determined that our money is note even manufactured out of paper any more, although we still call it paper money. Money is not just a piece of paper like fabric, it does also have a monetary value. This value has been determined by the volume and consistence of trade between countries of different currencies. By definition, as stated by the Merrimu…...

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