Thursday, November 6, 2008

Types of Money

Types of Money

Currency is paper bills and coins. Paper bills are paper or cloth notes with markings that indicate their monetary denominations. Paper bills are an example of fiat money. Coins are hard materials, typically metals, with markings that indicate their monetary denominations. Coins are an example of commodity money.

Fiat money is money that does not have intrinsic value. It generally cannot be used except as money. “Fiat” is Latin for “let it be done.” In English, a fiat is an arbitrary order or degree. Thus, fiat money is money because the government has declared it to be so. The Jacksonville University motto is “fiat lux,” which translates as “let there be light” or “let the light shine.” The goal of the university is to enlighten its students.

Commodity money is money that has intrinsic value. It can be used as something other than money. Gold and silver coins are commodity money because they can be melted down and used to make jewelry or other goods.

1 comment:

  1. Thanks for the information! It’s interesting to get to know about the history of money and about its types. We live in the digital age and now there are more types of money. For example, Bitcoin. According to the recent information, Bitcoin is money and it was admitted as money is by one of the US courts. Also there are payday installment loans which are online credit products. With a help of them you can get funds to deal with unexpected money problems.