What exactly does the concept currency mean?

Money refers not only to cash, but also to cash plus some tangible and intangible assets. The contractual nature of money determines that it can have different forms of expression, such as universal equivalent, precious metal currency, paper money, electronic money and so on. It can be used as a trading medium, storage value, deferred payment standard and accounting unit.

The definitions of money mainly include the following:

1, generally accepted goods used to pay for goods and services and pay off debts;

2, as a medium of exchange value, storage, price standards and deferred payment standards;

3. Excessive supply or demand will cause excessive demand for other assets or supply assets;

4. purchasing power temporary residence;

5. Liquidity assets as public net wealth do not pay interest;

6. The largest current assets related to national income, etc.

Extended data

The functions of money include value scale, circulation means, storage means, payment means and international money.

1, numerical range

When implementing the value scale of money, we don't need real money, only conceptual money.

The memory of the value scale can be like a ruler measuring the length with the length itself, and a weight weighing something with the weight itself. Money that measures the value of a commodity is also a commodity and has value. For example, 1 bicycle value 1 gram of gold, which is the value scale function of money.

2. Means of circulation

The function of money as a medium of commodity exchange. In the process of commodity exchange, commodity sellers convert commodities into money, and then buy commodities with money. Here, money plays the role of medium of exchange and performs the function of circulation means.

For example, if you buy something, you need to pay in one hand and deliver it in the other, and the money will be transferred from your own hands to others. This is the function of circulation means.

3. Storage means

As a means of storage, money should be full-value metal money (such as gold bars and silver bars). ).

However, there are different views on whether paper money can be used as a storage means. The traditional view is that only real and sufficient metal money can be preserved and used as a storage means. If the amount of paper money issued does not exceed the amount of metal money needed for commodity circulation, stable social purchasing power can be maintained.

4. Payment instruments

The function of money as an independent value form when it moves in one direction.

For example, using money to pay debts, pay taxes, pay wages and rent.

5. International currency

Due to the occurrence and development of international trade, currency circulation transcends the scope of a country and plays a role in the world market, so currency has the function of world currency.

For example, the international community regards the US dollar as the currency for payment and settlement, and the US dollar can be used worldwide beyond its own scope. This is the function of the world currency.

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