Sep 17 2019

What We See About Cash Value

In our daily life, we need cash to buy things of our need. Cash means money which can be kept at our house or deposited to the bank. Anything in the world is to be decides by money of its value.
Except money, gold, shares, foreign currency also have cash value. But, the cash value of those items are to be decided by the market of that day based on demand and supply. The only things are that you can turn to money immediately through the market.
But as far as other items of goods are concerned, you cannot turn to money immediately. You have to wait for buyer. If you have no buyer, what you have possessed are of no value at all.
For example, as to a house concerned. If you have a house to sell, you can sell at good price if the buyer likes your house. But, if you need cash urgently, and there is no buyer, then you will sell at very low price to some speculator in this trade. Price difference will be very big due to the supply and demand.