What are the characteristics of paper money?

Paper money has many advantages. First of all, its cost is low. The cost of paper money is that paper. In addition, printing and the scientific and technological applications it contains are generally low.

Secondly, paper money is easier to keep, carry and transport. Just fold them together and put them in your pocket when you go out! Coins are too small to be lost easily, while paper money is safer. Of course there are advantages and disadvantages, and paper money is no exception. Banknotes are prone to counterfeit money, and now the manufacturing technology of counterfeit money is getting higher and higher, and some of them can even be confused with genuine ones, which has brought great trouble to the operation of the money market.

Paper money is also time-sensitive, and paper money in different periods is different. After issuing new banknotes, the last banknotes will gradually fade out of the market. Paper money is also easy to break, and it may be destroyed if you tear it casually! But on the whole, the advantages of paper money outweigh the disadvantages, otherwise it will not continue to circulate for so long.

1. Paper money is a compulsory value symbol issued by the state (or some regions) to replace the metal currency in circulation. At first, people thought that only metal money was money. After paper money, paper money and other value symbols appeared, people brought them into the currency range. Later, I gradually realized that bank deposits have the same nature as paper money, which can be used to buy goods and pay for services. In addition, there are frequent conversions between bank deposits and metal money and paper money. Metal currency, paper money, etc. They are all deposited in the bank, that is, bank deposits, which are taken out of the bank, that is, metal currency, paper money and other currencies. This transformation between metal currency, paper money and bank deposits is not a transformation between currency and non-currency, but a transformation between two different forms of currency.

2. Paper money refers to the currency symbol that replaces the circulation of metal currency, which is issued by the state and is compulsory to use. Compared with metal currency, paper money is cheaper to make, easier to keep, carry and transport, and avoids the wear and tear of coins in circulation.

3. Paper money is money, which can only perform some functions of money: means of circulation and means of payment. The paper money of some countries can also perform the functions of the world currency (such as the dollar and the euro). Renminbi is the legal tender of People's Republic of China (PRC) and is issued by the People's Bank of China authorized by People's Republic of China (PRC). The state cannot issue paper money at will, and the circulation of paper money must be limited to the amount of money needed in circulation.