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Factors that determine the value of money.
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[QUOTE="Setho, post: 221259, member: 29023"] The money is actually something that difference between various locations and it is usually very difficult for you to be able to track the exact value of money that you have because of so many things that I usually happening around you that is beyond your control . 1 . Inflation . Inflation is just the purchasing ability of the general citizens . There are sometimes whereby the money in circulation is actually becoming too much or it is growing at an unprecedented rate and that might lead to the money becoming valueless and you have to pay more for an item . 2. Location . Sometimes you might cut your hair for $10 in your own country but then when you go to another region or another continent it is going to cost you about $20 in order to do that and location actually plays a role in the value of money . 3. Demand and supply . The principal of demand and supply usually plays a very big room whenever it comes to the value that money is supposed to have . For example whenever there is a unexpected increase in the demand for petrol there is usually going to be an increase in the price as well . [/QUOTE]
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Factors that determine the value of money.
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