What is the difference between currency and money?

Currency is a tangible concept, which includes tokens that act as money in a nation to facilitate financial transactions. On the other hand, money is the store of value that maintains buying power over an indefinite period. It is used as a medium of exchange, through which one can buy goods or services for consideration.

What is a currency & how does it work?

Currency is physical form of money, such as coins and banknotes, issued by a government or central authority for use as legal tender. Money serves as a medium of exchange, a unit of account, a store of value, and a standard of deferred payment, facilitating economic transactions and trade.

What determines the value of a currency?

Money’s value depends on the stability of the economy and the confidence people have in the currency. Many confuse currency with money, but currency is just a subset of money. While currency is the physical representation of money, money is a broader concept that includes various assets and financial instruments.