Money is any object or record that is generally accepted as payment for goods and services and repayment of debts in a given socio-economic context or country. The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally in the past, a standard of deferred payment. Any kind of object or secure verifiable record that fulfills these functions can be considered money.
Money is historically an emergent market phenomena establishing a commodity money, but nearly all contemporary money systems are based on fiat money. Fiat money, like any check or note of debt, is without intrinsic use value as a physical commodity. It derives its value by being declared by a government to be legal tender; that is, it must be accepted as a form of payment within the boundaries of the country, for "all debts, public and private". Such laws in practice cause fiat money to acquire the value of any of the goods and services that it may be traded for within the nation that issues it.
The money supply of a country consists of currency (banknotes and coins) and bank money (the balance held in checking accounts and savings accounts). Bank money, which consists only of records (mostly computerized in modern banking), forms by far the largest part of the money supply in developed nations.
Other articles related to "money":
... When gold and silver are used as money, the money supply can grow only if the supply of these metals is increased by mining ... the more typical situation for over a century when gold and paper money backed by gold were used as money in the 18th and 19th centuries ... Modern day monetary systems are based on fiat money and are no longer tied to the value of gold ...
... has said that between $600 billion and $1.5 trillion of illicit money is laundered annually, equal to 2% to 5% of global economic output ... Today, offshore is where most of the world's drug money is allegedly laundered, estimated at up to $500 billion a year, more than the total income of the world's poorest 20% ... "These offshore centers awash in money are the hub of a colossal, underground network of crime, fraud, and corruption" commented Lucy Komisar quoting these statistics ...
... she does not go away to her home before some stranger has cast money into her lap, and had intercourse with her outside the temple but while he casts the money, he must say, “I invite you in the name ... It does not matter what sum the money is the woman will never refuse, for that would be a sin, the money being by this act made sacred ...
... duck and receives 100 ducats, but is unable to spend all the money in one day ... Because of that he gives the remaining money to a beggar, who tells him that it's not money that brings luck ... A drunkard and bon-vivant, he has no trouble spending all the money on drinking with his friends ...
... Credit theories of money, also called Debt theories of money are concerned with the relationship between credit and money ... Proponents assert the essential nature of money is credit (debt), at least in eras where money is not backed by a commodity such as gold ... strands of thought within these theories are the idea that money originated as a unit of account for debt, and the position that money creation involves the simultaneous creation of ...
Famous quotes containing the word money:
“The notion of making money by popular work, and then retiring to do good work, is the most familiar of all the devils traps for artists.”
—Logan Pearsall Smith (18651946)
“Those who have money go abroad in the world, but those who have no suitable clothes are reluctant to do so.”
“Wealth, howsoever got, in England makes
Lords of mechanics, gentlemen of rakes;
Antiquity and birth are needless here;
Tis impudence and money makes a peer.”
—Daniel Defoe (16601731)