Money & Currency

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Money

Money has 4 functions:-

  1. Medium - a medium of Exchange.

  2. Measure - a measure of Value (or account).

  3. Standard - a standard of Value (or deferred payment).

  4. Store - a store of Value (or wealth).


Currency

Currency is a system of money (or monetary units) which is specific to a country.


In general, currencies are meant to be money but most currencies would not qualify as a Store of Value, due to Inflation.

Inflation

Inflation is the rate of increases in Prices over time.


With inflation, an amount of currency would be able to buy less in the future. So with high inflation, the stored value of a currency would diminish rapidly over time.