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Money is any object or verifiable record that is generally accepted as payment for goods and services and repayment of debts and taxes, in a particular country or socio-economic context. The main functions of money are distinguished as - a unit of account, a medium of exchange, a store of value and sometimes, a standard of deferred payment. Anything, such as an object or verifiable record that fulfils these functions can be considered as money. Money is primitively an emergent market phenomenon establishing a commodity money, but almost all contemporary money systems are based on fiat money. Fiat money is like any check or note of debt which has no value otherwise as a physical commodity. It derives its value by being declared by a government to be legal tender, which means, that it must be accepted as a form of payment within the boundaries of the country, for all debts, no matter public or private. The money supply of a country consists of currency specifically banknotes and coins and, depending on the particular definition used, one or more types of bank money (the balances held in savings accounts, checking accounts and other types of bank accounts). Bank money forms by far the largest part of broad money in developed countries and consists only of records (mostly computerized in modern banking).

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Image category: Money / Download Money Zip / Parent category: Miscellaneous

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