currencyeconomics
Main
in industrialized nations, portion of the national money supply, consisting of bank notes and government-issued paper money and coins, that does not require endorsement in serving as a medium of exchange; among less developed societies, currency encompasses a wide diversity of items (e.g., livestock, stone carvings, tobacco) used as exchange media as well as signs of value or wealth. In the developed nations, where checks drawn on demand deposits are an important means of transaction, currency may actually account for only a small portion of the total money supply.
Since the abandonment of the gold standard in the 1930s, governments have not been obligated to repay the holders of currency in any form of precious metal. Consequently the volume of currency is determined by the actions of the government or central bank and not by the supply of precious metals.
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Table of Contents
Media
- Confederate currency.[Credits : Library of Congress, Washington D.C.]
- Five-peso coin from the Philippines (obverse).[Credits : Encyclopædia Britannica, Inc.]
- Holograms are often used on valuable objects, such as Singapore’s currency, to deter counterfeiting.[Credits : Charles O’Rear/Corbis]
- Jordanian 10-piastre coin (obverse).[Credits : Encyclopædia Britannica, Inc.]
- Jordanian 10-piastre coin (reverse).[Credits : Encyclopædia Britannica, Inc.]
- Vegetable vendors in a market in Beijing count their money on July 22. On the previous day China’s …[Credits : © Guang Niu/Getty Images)]
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