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.
Famous quotes containing the word money:
“Just what is the civil law? What neither influence can affect, nor power break, nor money corrupt: were it to be suppressed or even merely ignored or inadequately observed, no one would feel safe about anything, whether his own possessions, the inheritance he expects from his father, or the bequests he makes to his children.”
—Marcus Tullius Cicero (10643 B.C.)
“... money trials are not the hardest, and somehow or other, they are always overcome.”
—Amelia E. Barr (18311919)
“This spending of the best part of ones life earning money in order to enjoy a questionable liberty during the least valuable part of it reminds me of the Englishman who went to India to make a fortune first, in order that he might return to England and live the life of a poet. He should have gone up garret at once.”
—Henry David Thoreau (18171862)