Money Write for Us
Money refers to any supportable record accepted as medium of exchange for payment of good and services and repayment of debt in specific country. Throughout history, government adopted different forms of money, such as gold, silver, coins, and banknotes.
Functions of Money
Money is anything that serves as medium of exchange. Other function of money are to serve as the unit of account and as a store of value.
Money may or may not have essential value. Commodity money has primary value because it has other uses besides being medium of exchange. Fiat money serve only as medium of business because the government authorizes its use as such; it has no basic value.
Throughout history and worldwide, money has taken diverse form– from cowrie shells, copper ingots, rum, and gold coins in the past to colorful pieces of paper or polymer and digital bank record today. Various token of exchange have been as money throughout Australia’s history.
Importance – Functions of Money
The importance of this function of money is dramatically illustrate by Germany’s experience just after World War II when paper money reduced useless because of price controls enforced effectively by the American, French, and British armies of occupation. Money rapidly lost its value. People were unwilling to exchange authentic goods for Germany’s depreciating currency. They resorted to barter or other inefficient money substitutes.
What are the Types of Money?
The four types of money, as economists classify, are commercial, fiduciary, fiat, and commodity. Money whose value comes from an item it makes is known as commodity money.
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