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How Money Works




Money

Text 12

History of Advertising

Control of Advertising

The Media and Advertising

Advertising

Text 11

 

Whenever people give information to the public about an event, a product, or a service, they are using advertising. A piece of advertising is called an advertisement, or ad.

The goal of most advertising is to make the public want to buy whatever is being advertised. People also use advertising to make the public form opinions about things. For example, an ad could try to make the public believe that a company treats its workers well. Another ad could try to make voters choose a certain candidate for president.

Ads appear almost everywhere. They are found in newspapers and magazines. They appear on television, radio, and the Internet. Ads are also posted as signs in all kinds of public places.

When advertisers want many people to see or hear their ads, they pay the media to have the ads published or broadcast. Newspapers and magazines publish, or print, ads between their articles. Television and radio networks broadcast, or play, ads during their programs. (Television and radio ads are also called commercials.) Web sites, buses, movie theaters, and many other places also display ads in exchange for money.

Advertisers are regulated, or controlled, in several ways. Governments usually pass laws to make sure that ads are truthful and do not offend consumers. Also, the media usually set their own rules that advertisers must follow.

Signs were the first form of advertising. Even thousands of years ago people created hand-lettered signs to advertise their goods and services. The invention of the printing press in the 1400s expanded this type of advertising. Merchants could print dozens of the same posters and fliers to advertise what they were selling. In the 1600s and 1700s newspapers appeared in Europe, the Americas, and Japan. Advertising then became even more widespread.

Today advertising is a huge part of business around the world. A major corporation may spend hundreds of millions of dollars a year just on advertising.

Whenever people pay for goods or services, they use some form of money. Money can be almost anything, as long as everyone agrees on its value. One of the earliest forms of money was metal, such as gold or silver. In North America, Native Americans used beads made of shell, called wampum, as a form of money.

Before people used money, they bartered, or traded things they had for the things they wanted. For example, a person may have traded five goats for one cow. Bartering was not always simple, though. Each person had to agree that the items being traded had an equal value. Also, each person had to have something that the other person wanted.

People invented money to avoid bartering. Someone with five goats could exchange them for a certain amount of money instead of a cow. The person could then exchange that money for grain, cloth, or other goods of the same value.

Today the metal coins and pieces of paper that people use for money have little real value. In other words, people do not use the paper for writing or the metal for making tools. The value of paper money and coins comes from an agreement between all people. They agree that they will accept certain forms of money in exchange for their goods and services. This agreement between people is the reason money works.




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