Moneyis any object or record that is generally accepted aspaymentforgoods and servicesand repayment ofdebtsin a given socio-economic context orcountry.[1][2][3]The main functions of money are distinguished as: amedium of exchange; aunit of account; astoreof value; and, occasionally in the past, astandard of deferred payment.[4][5]Any kind of object or secure verifiable record that fulfills these functions can be considered money.Money is historically anemergent market phenomenonestablishing acommodity money, but nearly all contemporary money systems are based onfiat money.[4]Fiat money, like any check or note of debt, is without intrinsicuse valueas a physical commodity. It derives its value by being declared by a government to belegal tender; thatis, it must be accepted as a form of payment within the boundaries of the country, for "all debts, public and private"[citation needed]. 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.
Posted on: Mon, 30 Sep 2013 08:01:27 +0000
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