Goods that have their uses would be considered valuable or valuable by humans, even humans willing to sacrifice to obtain it. Values are given human meaning of a good or service. An item has a value for goods and services are able to meet human needs, limited or scarce, and can be owned and exchanged with other goods.

Various kinds of value of goods
a. Use value, is the ability to be used in meeting the needs of life. For example, a house can be used as a shelter from rain and bad weather. This means the house has a use value to humans. Use value consists of two types, namely as follows:
1. subjective use value, the value given to a person’s goods because the goods can meet their needs. The assessment of the benefits of an item can vary. For a writer of books, computers have a higher subjective value than it is for a fisherman. Instead, the boat has a higher subjective value to the fishermen. Thus, the subjective use value is influenced by the intensity of use of an item by a person.
2. objective use-value, is the ability of goods to meet human needs in general. Assessment of an item given by a human or a lot of people. For example, for all humans, foods and drinks have the ability to eliminate hunger and thirst.

b. Exchange rate, is the ability of a goods exchange for money or other goods. Exchange rate consists of the following:
1. subjective exchange value, is the exchange value of goods from the viewpoint of the owners or people who exchange goods. The exchange rate of the subjective individual, means differ from one person to another. For example, a photographer does not want to swap the camera with a camera phone, although for many people, both objects have the same function.
2. exchange rate objective, the exchange of goods generally applicable. In other words, the exchange rate from the viewpoint of the goods themselves. For example the services of a farmer tilling fields exchanged by one-third the harvest fields.

Money is a vital tool in our lives today. Without money, we will not be able to meet the needs and desires in life. Money is one object among many objects in the economic sense. Each object has a value, although the value of a single object with other objects is not the same. Society gives value to a thing, because it provides benefits to the community concerned. Only objects that have value to her request. So as for why people give value to something that matter, is because it was requested by the communities concerned, in other words because it gives benefits or to meet the specific needs of the communities concerned. The greater the benefits or needs can be met by something object, the higher the value of the object in question. Conversely the less the benefits provided by some things, the lower the value assigned by society to him.

Why does money have value? This question is not difficult to answer if it was accepted that the money that too is an object. Money as an object can not be separated from the description mentioned above. Clearly the money has value, because the public making a request to it. Furthermore, that money has value because it can meet the needs of the community in many ways. Indeed it is only as an intermediary tool alone, but because the money was to benefit as an intermediary tool then that money has value. Thus did the changes the value of money is closely linked to demand changes to it.

Whenever such a rising demand for money, then the value of money rises, the opposite if the demand for money is a little money and even then the value will decline. Rise and fall of demand for money we can see from the speed of the velocity of money. The faster the velocity of money means less demand for money, meaning money fled to the goods. Conversely, the slower velocity of money, the greater the demand for money, in other words the more people want to save some of his wealth in the form of money. In the circumstances the velocity of money very fast which means lower demand for money, value for money will fall. Furthermore, in a state of very slow turnover, which means rising demand for money, value for money will rise.

Incoming Terms:

• velocity exchange rate

Fiscal policy is a policy to regulate state revenues and expenditures. Fiscal policies pursued to cope with inflation include:
a. Reduce state expenditure.
b. Savings in government spending (adjusted for the plan).
c. Reduction of foreign debt.
d. Raise or streamline taxes.
The types of credit markets, namely:
a. Closed Market: specific to certain circles (eg between banks and customers).
b. Open Market: open to the public where the loaned each other free to hold bidding.
c. Money market: the market where traded securities that have a period of less than one year.
d. Capital markets: a long-term funds are bought and sold more than one year’s time.

While the bill of sale of long-term debt and equity capital letter sign is called the Stock Exchange.

Incoming Terms:

• fiscal policy and credit market