Currency is all that money that is circulating publicly and that is issued by a State or by the Central Bank. In addition, the meaning of currency also refers to the type of currency that is specific to each country.
The concept of currency comprises at the same time a differentiation. On the one hand we call currency what is currency as such, money, and on the other hand money in the form of a ticket.
Features of la moneda
In general, it is the Government, based on the goods and services that determines how much money and currency there is in circulation. For this reason, the most important characteristics of the currency are also defined from the monetary policy of the moment.
- The value of the currency as it happens with the exchange rate itself, always depends on the law of supply and demand
- Currency can also be understood as an economic exchange, through checks, for example
- The currency has a value for the whole community that must be accepted by all its parts