Traditional Culture Encyclopedia - Traditional stories - What are the characteristics of credit currency? A brief description of the characteristics of credit currency
What are the characteristics of credit currency? A brief description of the characteristics of credit currency
The characteristics of credit currency are as follows:
1. Credit currency has completely cut off its connection with precious metals. Its issuance is not mainly prepared with gold, and the country does not promise to honor gold or legal funds. Compensatory currency, it is a symbol of value;
2. The basic guarantee of credit currency is the credibility of the government and the credibility of banks, which is mandatory; ?
3. Credit currency is debt currency .
Credit money (credit money) is a currency that is stipulated by national law and is forced to circulate independently and performs monetary functions independently and is not based on any precious metal. At present, the currencies issued by countries around the world are basically credit currencies.
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