Definition of 'Money'
There are many different types of money. The most common type of money is fiat money, which is issued by a government and is not backed by anything of value. Fiat money is used because it is easy to transport and store, and it is accepted by people in exchange for goods and services.
Another type of money is commodity money, which is backed by a valuable commodity, such as gold or silver. Commodity money is used because it is a store of value and it can be used to trade for other goods and services.
Finally, there is representative money, which is a claim on a specific amount of gold or silver. Representative money is used because it is backed by a valuable commodity, and it can be redeemed for gold or silver.
Money is an important part of our economy. It allows us to buy things we need and want, and it helps us to save for the future. There are many different types of money, and each type has its own advantages and disadvantages.
Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 150 bonus reputation points for each definition that is accepted.
Is this definition wrong? Let us know by posting to the forum and we will correct it.