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14/ A commodity like gold will get established as cash when all other commodities have a relatively stable exchange fee with it. Some commodities fare higher on these criteria than others. 13/ Gradually, as a result of of higher marketability and network results, during the course of historical past, metals like gold and silver emerged as most popular mediums of alternate. You want money to be easy to store, transportable, divisible, and durable. 15/ Nobody decides what number of grams of gold is a cow price. 16/ The key to understanding money is to do not forget that it is a commodity whose utility is in facilitating exchanges, just like leather is a commodity whose utility is in making shoe soles. The market progressively determines this exchange rate by accounting for supply and demand for each commodities: gold and cows. 12/ Network results mean that the more broadly a currency is accepted by others, the extra probably is it to get accepted by others.
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