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Monetary economics. Monetary economics is the branch of economics that studies the different theories of money: it provides a framework for analyzing money and considers its functions (such as medium of exchange, store of value, and unit of account), and it considers how money can gain acceptance purely because of its convenience as a public ...
The functions of money are that it is a medium of exchange, a unit of account, and a store of value. [26] To fulfill these various functions, money must be: [27] Fungible: its individual units must be capable of mutual substitution (i.e., interchangeability). Durable: able to withstand repeated use. Divisible: divisible to small units.
The alternative to a commodity money system is fiat money which is defined by a central bank and government law as legal tender even if it has no intrinsic value. Originally fiat money was paper currency or base metal coinage, but in modern economies it mainly exists as data such as bank balances and records of credit or debit card purchases, [3] and the fraction that exists as notes and coins ...
The history of money is the development over time of systems for the exchange, storage, and measurement of wealth. Money is a means of fulfilling these functions indirectly and in general rather than directly, as with barter. Money may take a physical form as in coins and notes, or may exist as a written or electronic account.
This is an accepted version of this page This is the latest accepted revision, reviewed on 10 November 2024. Portable Document Format, a digital file format For other uses, see PDF (disambiguation). Portable Document Format Adobe PDF icon Filename extension.pdf Internet media type application/pdf, application/x-pdf application/x-bzpdf application/x-gzpdf Type code PDF (including a single ...
Quantity theory of money. The quantity theory of money (often abbreviated QTM) is a hypothesis within monetary economics which states that the general price level of goods and services is directly proportional to the amount of money in circulation (i.e., the money supply), and that the causality runs from money to prices.
International monetary system. An international monetary system is a set of internationally agreed rules, conventions and supporting institutions that facilitate international trade, cross border investment and generally the reallocation of capital between states that have different currencies. [1] It should provide means of payment acceptable ...
Money portal. v. t. e. A currency[a] is a standardization of money in any form, in use or circulation as a medium of exchange, for example banknotes and coins. [1][2] A more general definition is that a currency is a system of money in common use within a specific environment over time, especially for people in a nation state. [3]