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Difference between Money and Currency

  1. Money:
    • Definition: Money is a broader term that refers to an intangible system of value that makes the exchange of goods and services possible, both now and in the future.
    • Functions of Money:
      • Medium of Exchange: Money facilitates transactions by serving as a means to buy and sell goods and services.
      • Store of Value: Money retains its value over time, allowing people to save and store wealth.
      • Unit of Account: Money provides a common measure for pricing goods and services.
      • Standard of Deferred Payment: Money can be used to settle debts and obligations in the future (temporal).
    • Examples: Money includes not only physical currency but also other assets like stocks, bonds, and properties34.
  2. Currency:

In summary, currency is a tangible form of money used for everyday transactions, while money encompasses a broader concept that includes both tangible and intangible forms of value.

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