A standard of deferred payment is the accepted way, in a given market, to settle a debt – a unit in which debts are denominated. It is one of the defining functions of money; for example, while the gold standard reigned, gold or any currency convertible to gold at a fixed rate constituted such a standard. As of 2010, the US dollar and the euro are the most generally accepted standards for international settlements.
The term "standard of deferred payment" is not as widely used as other terms for functions of money, namely medium of exchange, store of value, and unit of account, though it is distinguished in some works.
Read more about Standard Of Deferred Payment: Functions of Money, Relation To Debt, Examples
Famous quotes containing the words standard of, standard and/or payment:
“An indirect quotation we can usually expect to rate only as better or worse, more or less faithful, and we cannot even hope for a strict standard of more and less; what is involved is evaluation, relative to special purposes, of an essentially dramatic act.”
—Willard Van Orman Quine (b. 1908)
“There is a certain standard of grace and beauty which consists in a certain relation between our nature, such as it is, weak or strong, and the thing which pleases us. Whatever is formed according to this standard pleases us, be it house, song, discourse, verse, prose, woman, birds, rivers, trees, room, dress, and so on. Whatever is not made according to this standard displeases those who have good taste.”
—Blaise Pascal (1623–1662)
“Put God in your debt. Every stroke shall be repaid. The longer the payment is withholden, the better for you; for compound interest on compound interest is the rate and usage of this exchequer.”
—Ralph Waldo Emerson (1803–1882)