Money - AbsoluteAstronomy.com

Overview

Money is any object

Object

Object may refer to:* Object , a thing, being or concept** Entity, something that is tangible and within the grasp of the senses* As used in object relations theories of psychoanalysis, that to which a subject relates....

or record that is generally accepted as payment

Payment

A payment is the transfer of wealth from one party to another. A payment is usually made in exchange for the provision of goods, services or both, or to fulfill a legal obligation....

for goods and services

Goods and services

In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility. It is often used when referring to a Goods and Services Tax....

and repayment of debts in a given country

Country

A country is a region legally identified as a distinct entity in political geography. A country may be an independent sovereign state or one that is occupied by another state, as a non-sovereign or formerly sovereign political division, or a geographic region associated with a previously...

or socio-economic context. The main functions of money are distinguished as: a medium of exchange

Medium of exchange

A medium of exchange is an intermediary used in trade to avoid the inconveniences of a pure barter system.By contrast, as William Stanley Jevons argued, in a barter system there must be a coincidence of wants before two people can trade – one must want exactly what the other has to offer, when and...

; a unit of account

Unit of account

A unit of account is a standard monetary unit of measurement of value/cost of goods, services, or assets. It is one of three well-known functions of money. It lends meaning to profits, losses, liability, or assets....

; a store of value

Store of value

A recognized form of exchange can be a form of money or currency, a commodity like gold, or financial capital. To act as a store of value, these forms must be able to be saved and retrieved at a later time, and be predictably useful when retrieved....

; and, occasionally in the past, a standard of deferred payment

Standard of deferred payment

A standard of deferred payment is the accepted way, in a given market, to settle a debt – a unit in which debts are denominated. It is one of the defining functions of money; for example, while the gold standard reigned, gold or any currency convertible to gold at a fixed rate constituted such a...

. Any kind of object or secure verifiable record that fulfills these functions can serve as money.

Money originated as commodity money

Commodity money

Commodity money is money whose value comes from a commodity out of which it is made. It is objects that have value in themselves as well as for use as money....

, but nearly all contemporary money systems are based on fiat money

Fiat money

Fiat money is money that has value only because of government regulation or law. The term derives from the Latin fiat, meaning "let it be done", as such money is established by government decree. Where fiat money is used as currency, the term fiat currency is used.Fiat money originated in 11th...

.

Unanswered Questions