Money

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.

Read more about Money:  History, Functions, Money Supply, Types of Money, Monetary Policy

Famous quotes containing the word money:

    I swear ... to hold my teacher in this art equal to my own parents; to make him partner in my livelihood; when he is in need of money to share mine with him; to consider his family as my own brothers and to teach them this art, if they want to learn it, without fee or indenture.
    Hippocrates (c. 460–c. 370 B.C.)

    In general, the art of government consists in taking as much money as possible from one party of the citizens to give to the other.
    Voltaire [François Marie Arouet] (1694–1778)

    Scientists have odious manners, except when you prop up their theory; then you can borrow money of them.
    Mark Twain [Samuel Langhorne Clemens] (1835–1910)