Definition of Currency:
The fact or quality of being generally accepted or in use.
A system of money in general use in a particular country.
Tokens used as money in a country. In addition to the metal coins and paper bank notes, modern currency also includes checks drawn on bank accounts, money orders, travelers checks, and will soon include electronic money or digital cash. Types of Currency What gives currency its value? Depending on the type of money, there are many different ways that value is assigned and handled. These are the types of currency.
Fiat currency is, at its core, money that is worth what the government and free market determine it is worth. It gets its value through fiat. Every developed nation uses fiat currency, because the value can be controlled through monetary policies. Some examples of fiat currency include the American dollar, British pound, and Euro. Asset Backed Currency
Sometimes, assets like gold and silver are used to guarantee the value of currency. Often, asset backed currencies are made out of a precious metal, but this isnt always the case. Sometimes an asset backed currency can be exchanged for a given quantity of the asset, like the American dollar was exchangeable for gold prior to the 1930s. Commodity Backed Currency
Commodity backed currencies are largely a relic of history. Commodities like tobacco were used to guarantee the value of currency. Although they arent in use anymore, commodity backed currencies played a large role in the early days of capitalism. Their weakness is that there was often a shortage of a particular commodity due to yearly fluctuations, and that could wipe out or drastically increase the amount of wealth in any given financial system. Digital Currency
The final, and most modern, type of currency is digital currency. Digital currencies get their value through scarcity imposed on them by the need to solve difficult equations. For example, Bitcoins need to be mined by computers that solve mathematical problems. Digital currencies tend to be anonymous by design, and can only be spent by using computers to handle the transaction.
Synonyms of Currency
Money, Legal tender, Medium of exchange, Cash, Banknotes, Notes, Paper money, Coins, Coinage, Prevalence, Circulation, Dissemination, Publicity, Exposure, PR, And pence, Averageness, Ballyhoo, Blurb, Bon ton, Bright light, Cash, Celebrity, Circulating medium, Coin, Coinage, Coined liberty, Cold cash, Common knowledge, Commonality, Commonness, Commonplaceness, Cry, Daylight, Dollars, Dough, Eclat, Emergency money, Exposure, Extensiveness, Fame, Famousness, Fashionableness, Filthy lucre, Fractional currency, Generality, Glare, Gold, Habitualness, Hard cash, Hard currency, Hoopla, Hue and cry, Legal tender, Lettuce, Limelight, Lucre, Mammon, Managed currency, Maximum dissemination, Medium of exchange, Mintage, Modishness, Money, Necessity money, Needful, Normality, Notoriety, Ordinariness, Pelf, Plug, Popularity, Postage currency, Postal currency, Pounds, Press notice, Prevalence, Public eye, Public knowledge, Public relations, Public report, Publicity, Publicity story, Publicness, Puff, Rampantness, Reclame, Reign, Report, Rifeness, Routineness, Run, Scrip, Shillings, Silver, Soft currency, Specie, Spotlight, Standardness, Sterling, Stylishness, Sweepingness, The almighty dollar, The wherewith, The wherewithal, Usualness, Voguishness, Widespreadness, Write-up
How to use Currency in a sentence?
- If you are planning a trip overseas, determine ahead of time if you will need to convert your money to the other countrys currency .
- The dollar was a strong currency.
- After arriving in the foreign country, the tourist visited a bank to exchange his money because he couldnt buy, see or do anything without the local currency .
- The term gained currency during the second half of the 20th century.
- Ken tried to make some extra money in the foreign exchange markets, but he lost lhis investment because he didnt know anything about currency .
Meaning of Currency & Currency Definition