How to understand money makes economic crises a formal possibility

Monetary functionsand the economic crisis.

As a means of circulation, money acts as a medium for the exchange of commodities, separating the exchange into two processes: buying and selling. When buying and selling are separated in time and space, a commodity economy is formed.

The possibility of a crisis in the form of an economic crisis. Money as a means of payment further expands the inherent contradictions of the commodity economy. As commodity producers buy and sell each other on credit, there are debts, and a chain of debts is formed, and once someone fails to pay on time, a series of chain payment difficulties will arise, making many commodity producers have difficulties in capital turnover, thus further developing the possibility of an economic crisis.

The economy in the modern sense includes the real economy.

and the virtual economy, but in the slave society and feudal society where the level of productivity is underdeveloped.

Even in the early days of capitalist society, the real economy occupied a dominant position, and mercantilism followed by the emergence of mercantilism, which began to plunder other countries' precious metals and other rare resources. And the currency only represents the credit of **, which is the general equivalent of ** compulsory issuance and mandatory use by the residents to which it belongs. This kind of currency issued on the basis of ** credit, in order to be recognized by the people and recognized by the world, first of all, it is required that there must be no problems with the credit of **, such as the economic crisis.

the ability to defuse; Strategic investments in other countries should be premised on good returns; ** It is necessary to take a responsible attitude and control the amount of money issued to avoid inflation in the economy.

or deflation. Secondly, the exchange rate of the country's currency on the international market** can also reflect the country's economic strength to a certain extent. And once there are laissez-faire measures, coupled with the fact that the currency itself is not a commodity in the true sense, this will inevitably cause panic among investors and cause a series of chain reactions.

The authority of money as a means of circulation and payment was questioned, setting the stage for the outbreak of the economic crisis.

Typically, when a country's economy collapses, it is accompanied by inflation, skyrocketing prices, and constantly depreciating its currency.

There is more and more money in the market, fewer and fewer resources, and when ordinary people get money, they are already short of materials. The economy is collapsing, prices are soaring, the currency is depreciating, and most enterprises are unsustainable.

Hyperinflation is a type of inflation that cannot be controlled, and in the case of rapid prices, the currency quickly loses its value. This hyperinflation is generally that demand is much greater than **.

In the event of an economic crisis in China, the renminbi will depreciate against the dollar, the level of domestic production will not keep up, and imports will not be able to keep up, and the money supply will be far greater than the physical goods on the market.

Inflation will cause a substantial decline in the purchasing power of the people, and at the same time the country's real income will also decrease, one of which is the tax system, which is mainly reflected in the lag in the calculation and payment of taxes.

In the case of money performing the role of a means of circulation, commodities are no longer directly exchanged with each other, but exchanged with money as a medium. The owner of the commodity first exchanges the commodity for money, and then exchanges the currency for other goods. This kind of commodity exchange with money as the medium, and the transition from barter to commodity circulation, means that the inherent contradictions of the commodity economy have further developed.

Because under these conditions selling and buying are separated into two separate processes, if the person who sells the goods does not buy them immediately, the goods of others will not be sold. In other words, the function of money as a means of circulation already includes the formal possibility of an economic crisis.

In an economic crisis, many enterprises go bankrupt and the country has no money, so there will be a phenomenon that cash is king;

Because there is no money, the state, enterprises and individuals will sell financial assets in exchange for cash, so it will lead to all commodities ****;

Therefore, when an economic crisis occurs, the first reaction is to hold on to the money in the middle rather than any other asset, which leads to a shortage of money in the market and causes deflation.

Answer]: B, C

This question examines the relationship between the function of money and the economic crisis. As a means of circulation, the coin acts as a medium for commodity exchange, separating the exchange into two processes: buying and selling. When buying and selling are separated in time and space, the possibility of an economic crisis in the commodity economy is formed.

Money, as a means of payment, further expands the inherent contradictions of the commodity economy. As commodity producers buy and sell each other on credit, there are debts, and a chain of debts is formed, and once someone fails to pay on time, a series of payment difficulties will arise, which will make many commodity producers have difficulties in capital turnover, thus further developing the possibility of an economic crisis. Therefore, the correct answer is bc

1.Global Currency Crisis: The global currency crisis is triggered by factors such as the global economic development and the balance of the economy, foreign exchange market volatility and investor panic.

2.Commercial fraud: Commercial fraud refers to the fraudulent behavior carried out by commercial entities by means of deception, misleading, lies, etc., to the detriment of the interests of others.

3.International criminal organizations: International criminal organizations refer to organizations that mainly engage in criminal activities such as drug trafficking, smuggling, and kidnapping.

There are many situations of economic crisis, some are overproduction crises, such as the Great Depression in the United States in 1929, some are national turmoil crises, such as the late Kuomintang period, and debt crises, such as the crisis in the United States and Europe, so under different circumstances, the introduction of monetary policy in natural countries is also different, can not be one-size-fits-all, simply devaluation or appreciation, to implement monetary policy for specific problems, the right medicine.