ECA 351

Money and Banking

1. As to its origin, why is money a function of the relationship of different cultures and trade?
2. Why is it correct to say that there is a difference between money and the monetary asset?
3. Why is it incorrect to say that money creates trade (without saying that it is because it is the other way around)?
4. Why is it true that the real necessity of a banking system only begins as the population of a country rises significantly?
5. Besides the Banking industry, what two other institutions are necessary in order for a monetary system to work?