Question

1 An individual is holding an ancient coin and claims that he got money. Discuss whether his claim is true or false?  State your justification.?

2 What do you mean by money has “intrinsic value”?

3 An individual has Centurion® Card from American Express (credit cards).  The credit card is most valuable credit card in the world.  Can this individual claim that he/she is a wealthy individual?

4 Why do we need a Central Bank for an economy?

Answer 1

1.

The intrinsic value of a coin can be thought of as the measure of cash the metal inside the coin is worth. In this way, the silver, gold, copper, nickel, or other metal in a coin would be the reason for verifying that coin's intrinsic value. On head of this, numerous coins likewise have a numismatic value.

The individuals claim of that he got the money when finding the ancient coin may not be correct because it may not be the legal tender as money today and may not have the face value as money but it will have the intrinsic value as per discussion above.

2.

Intrinsic value is a proportion of what a product or stock is worth. This measure is shown up at by methods for a target count or complex money related model, as opposed to utilizing the right now face value of the product or object or stock.

In monetary analysis this term is utilized related to assess the fundamental value of an organization and its income.

There is no all inclusive norm for ascertaining the intrinsic value of an organization, however money related experts fabricate valuation models dependent on parts of a business that incorporate subjective, quantitative and perceptual variables.

Intrinsic value is computed using the quantitative and qualitative factors put together what is the wort of the object or product or the stock or underlying which is being evaluated.