- "Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts."
An introduction to the concept of money, its history, forms, and different functions that it serves in the economy.
Money and its Definition: Understanding the basics of what money is and how it functions.
The History of Money: Learning about the evolution of money over time and the different types of currencies used throughout history.
The Quantity Theory of Money: A theory explaining the relationship between the quantity of money in an economy and the price level of goods and services.
The Central Bank: The institution responsible for managing the money supply and regulating the banking sector.
Monetary Policy: The actions taken by central banks to manage the money supply and influence the economy.
Inflation: The rate at which the general price level of goods and services is rising over time.
Deflation: The opposite of inflation, where the general price level of goods and services is decreasing over time.
Interest Rates: The cost of borrowing money and the return on savings and investments.
Exchange Rates: The value of one currency in relation to another.
Fiscal Policy: The decisions made by governments regarding taxes, spending, and borrowing.
Economic Growth: The rate at which an economy is expanding over time.
Gross Domestic Product (GDP): A measure of the total economic output within a country.
Unemployment: The percentage of the population that is without a job.
Financial Markets: The markets where investors buy and sell financial assets such as stocks and bonds.
International Trade: The exchange of goods and services between countries.
Balance of Payments: The record of all financial transactions between a country and the rest of the world.
Money Supply: The amount of money available in the economy.
Velocity of Money: The speed at which money changes hands in the economy.
Fractional Reserve Banking: The banking system where banks only keep a fraction of deposits on hand and lend out the rest.
Money Multiplier: The amount by which the money supply increases in response to an increase in reserves.
Trade Deficit/Surplus: The difference between the value of exports and imports in a country.
Gold Standard: A monetary system where the value of money is tied to the value of gold.
Fiat Currency: A currency that is not backed by a physical commodity such as gold.
Hyperinflation: Extreme inflation that results in a rapid decrease in the value of money.
Financial Crisis: A period of severe economic disruption usually caused by a sudden, unexpected event.
Cryptocurrency: A digital or virtual currency that uses cryptography for security and is not tied to any physical asset.
Financial Regulation: Laws and regulations that govern the behavior of financial institutions.
Money laundering: The illegal process of concealing the origins of money obtained through criminal activities.
Credit rating: A measure of the creditworthiness of an individual or an organization based on previous borrowing behavior.
Financial innovation: Introduction of new financial products and services.
Commodity Money: This type of money is made of precious metals such as gold or silver and has intrinsic value.
Fiat Money: This type of money has no intrinsic value and is accepted by law as a means of payment.
Virtual Currency: This type of money is digital and is traded online, with popular examples including Bitcoin and Ethereum.
Legal Tender: This type of money is officially recognized by the government as a means of payment and must be accepted in payment of debts.
Bank Money: This type of money is created by commercial banks through the process of lending. It includes deposits and checking accounts.
Credit Money: This type of money is created by borrowing and represents a promise to pay in the future.
Electronic Money: This type of money is digital and is stored on a smart card, mobile phone or computer.
Bullion: This type of money is made of precious metals such as gold or silver and is traded in bulk.
Plastic Money: This type of money refers to credit or debit cards, which are made of plastic and allow transactions to occur without the need for cash.
Travellers Cheques: This type of money is a cheque issued by a financial institution and can be used as a means of payment when travelling.
Foreign Currency: This type of money is the currency of another country and is used in international trade and investment.
Cryptocurrency: This type of money is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units.
- "The primary functions which distinguish money are: medium of exchange, a unit of account, a store of value and sometimes, a standard of deferred payment."
- "Nearly all contemporary money systems are based on unbacked fiat money without use value."
- "Its value is consequently derived by social convention, having been declared by a government or regulatory entity to be legal tender."
- "Legal tender... must be accepted as a form of payment within the boundaries of the country, for 'all debts, public and private'."
- "The money supply of a country comprises all currency in circulation and... one or more types of bank money."
- "Bank money... can be converted into physical notes or used for cashless payment."
- "Bank money... forms by far the largest part of broad money in developed countries."
- "Money was historically an emergent market phenomenon that possessed intrinsic value as a commodity."
- "Money is generally accepted as payment... for repayment of debts, such as taxes."
- "Money is any item... that is generally accepted as payment for goods and services."
- "Money is a unit of account."
- "Money is... a store of value."
- "Money is sometimes... a standard of deferred payment."
- "Its value is consequently derived by social convention."
- "It must be accepted as a form of payment within the boundaries of the country... in the case of the United States dollar."
- "The money supply of a country comprises all currency in circulation (banknotes and coins currently issued)."
- "Bank money... can be used for cashless payment."
- "Bank money, whose value exists on the books of financial institution... forms by far the largest part of broad money in developed countries."
- "Nearly all contemporary money systems are based on unbacked fiat money without use value."